Kmart returning to Dunedin

The former Smiths City building in South Dunedin where a new Kmart store will be developed. Photo...
The former Smiths City building in South Dunedin where a new Kmart store will be developed. Photo: Stephen Jaquiery
Dunedin shoppers rejoice, Kmart is coming back to town.

The Australian retailer announced today it would be returning to the city with a new store in Andersons Bay Rd on the former Smiths City site, owned by Otago Land Group.

The development was still subject to final Dunedin City Council consent. Construction would start as soon as that consent was received, Otago Land Group director Martin Dippie said in a statement.

Kmart moved out of Meridian Mall early in 2020, citing concerns about required seismic strengthening.

An artist's impression of the new Kmart store.
An artist's impression of the new Kmart store.

Otago Land Group was granted consent by the city council in September that year allowing Kmart to operate at the former Smiths City site for four years while it searched for a permanent home.

Kmart property group general manager Ben Smith said in a statement the company had been working hard behind the scenes to secure the "ideal location" that would continue to serve well into the future, and one that was suitably zoned with land opportunities for a retail development of the site.

The new store would be a stand-alone location and stock the full Kmart range.

More than 100 people would be employed.

No opening date has been set.

"We are incredibly grateful and appreciative of the community’s patience whilst we have been securing all the right elements to land this new location," Mr Smith said.

"We can’t wait to welcome the Dunedin community back into our store."

Otago Land Group was keen to "get under way and return Kmart to Dunedin as soon as possible", Mr Dippie said.

A council spokesman said it had not received an application for resource consent from Kmart but it had received one for a large-scale retail activity from Otago Land Group Ltd and Home Centre Properties Ltd.

The application was progressing but the council was unable to confirm a timeline for a decision.

Home Centre Properties is also connected to the Dippie family, its directors listed as Martin Dippie’s brother, Allan, and sister-in-law, Elizabeth.

That application for land-use consent, lodged on July 27, said consent was sought for the construction of a single-building retail hall of about 4000sq m and a 940sq m storage and associated amenities facility, split over two levels.

The building design would retain and reuse a large proportion of the existing structure.

Ashburton store opens

Shoppers lined up early today in preparation for the opening of Ashburton's new Kmart at the River Crossing development. 

The store on the corner of Cass and South Sts showcases a fresh layout that is being rolled out nationally as part of the company’s plan to improve the shopping experience.

Kmart Ashburton manager Kim Spooner said the store would include central self-serve check outs, wider aisles for easy wheelchair and pram access, and bold graphics for ease of navigation.

sally.rae@odt.co.nz

- additional reporting Ashburton Courier