Woolworths has opened up about the long and costly road to bring a new supermarket to Halswell, revealing the project was first launched nearly a decade ago and has been delayed by what the company describes as an overly complex and outdated planning system.
Woolworths New Zealand’s Director of Property, Matthew Grainger, visited the Halswell site on Wednesday and spoke with Chris Lynch about the major obstacles the company has faced since purchasing the land in 2016 for $23.2 million.
It took four years and more than $3 million just to get resource consent.
“In New Zealand, we have very complex planning laws,” Grainger said. “The time it takes to get approval to establish a new supermarket is very protracted. In this case, it took us over four years just to get consent. That’s why we’re supportive of the Commerce Commission’s recommendation to free up planning laws and improve access to retail grocery sites.”
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Grainger said the delays weren’t due to any one agency.
“We’re not singling out a particular party. Our frustration is with the system itself. There are neighbour issues, infrastructure considerations, and a general level of red tape that’s become normal. These delays are not uncommon anymore, and that’s the real problem.”
Woolworths is now backing recommendations by the Commerce Commission aimed at streamlining supermarket development, including proposals to reduce regulatory barriers and allow positive competitive benefits to be considered in planning decisions.
Grainger said the company is hopeful the Government will act on those recommendations as it reviews the Resource Management Act.
Construction is now underway at the Halswell site, with intersection upgrades completed and development partner Fletcher Living currently preparing the wider 22-hectare site.
“The supermarket itself is just a small part of the land. Fletcher’s is putting in the roads and infrastructure now. Come spring, we’ll begin building the supermarket itself,” Grainger said.
The Halswell project is just one of several new developments planned in Christchurch. Woolworths recently secured resource consent for a new store in south Rolleston, within the Arbor Green subdivision.
A separate application is before Christchurch City Council for a proposed store on Madras Street in St Albans.
“We’re also expanding our Hornby distribution centre to support our growing operations in Canterbury,” Grainger said.
While increased supermarket development doesn’t guarantee lower prices, Grainger said competition is key.
“More competition is great for consumers and ultimately leads to lower prices.”
Looking around the Halswell site, Grainger said the most important thing now is keeping the work on track.
“We just need some dry weather to keep things moving. It’s great to finally be at this stage.”
