Australian-owned Bunnings New Zealand officially opened its 12,500sq m store in Dunedin yesterday after several days' trading.
Bunnings New Zealand general manager Rod Caust expected the store to spark a round of "competitive price marketing" from other hardware stores.
"Sometimes, the entry of a new player can prompt what could be called a price war, and that will be good for consumers," he said.
Dunedin was an important market for the company but "down the track" it would also focus on establishing relationships with tradesmen from outside the city.
Master Builders' Association Otago branch president Mike Fahey said Bunnings was entering a market where most tradesmen had negotiated discounts with existing outlets.
Competition among suppliers might be good news for trade prices.
"But the real difference might be for the DIY market, which doesn't buy as regularly as we do.
"It'll certainly keep prices keen."
Placemakers Dunedin joint venture owner Justin Macready said he believed Bunnings would have limited success in the trade market, which made up most of his company's business.
Mitre 10 Mega Dunedin store managing director Martin Dippie was overseas and unavailable for comment, as were senior executives from Mitre 10's Auckland head office.
Store manager Lindsay Aitcheson said he could not comment other than to say the city's hardware market was already "very good".
Carters Dunedin branch manager Maurice Blair could not be contacted.
