East Aucklanders will have to journey a little further to get a bargain as The Warehouse at Pakuranga is closing.
The Times can report the closure of “The Red Shed” at Pakuranga by the end of January after approaching The Warehouse Group for confirmation.
Loyal readers and members of the community contacted the Times letting us know the word on the street this week has been that The Warehouse at Pakuranga is shutting its doors for good.
In his answers to the Times, Ian Carter, the executive general manager store operations for The Warehouse, points to the disruptions to retail trade caused by the large construction projects happening in and around Pakuranga Plaza as a major factor in the Pakuranga store’s closure.
“Our lease is coming to an end, and after reviewing the store’s location, foot traffic, and the impact of ongoing roadworks around Pakuranga Plaza, we’ve made the difficult decision to not renew our lease and close our Pakuranga store by the end of January 2025,” Carter says.
“We want to thank all our amazing customers for their support over the years.”
When the Times visited The Warehouse at Pakuranga on Tuesday, staff there were reluctant to answer questions about the potential store closure.
The store “opened around 1993”.
“Our top priority is to support our team and work with them on redeployment opportunities in our nearby stores like Botany, Sylvia Park, and Ormiston,” says Carter.
“We currently have 42 team members, and our aim is to offer all our team members redeployment opportunities.”
The Times also approached Panda Mart for comment about the closure of The Warehouse, because it’s one of the more prominent retailers at Pakuranga Plaza.
It has its large retail outlet, previously occupied by Farmers, and uses smaller shop spaces formally used by other now-departed operators at the Plaza to store stock.
Panda Mart responded to the Times: “Regarding the potential closure of The Warehouse at Pakuranga and the possible relocation of Panda Mart into that space, we don’t have specific information on these developments.”
Panda Mart directed us to contact Pakuranga Plaza management “for accurate and up-to-date details”.
Our questions to Pakuranga Plaza management, that were sent before receiving Panda Mart’s reply, remain unanswered.
News of The Warehouse’s closure at Pakuranga is another serious blow to the economic fortunes of Pakuranga Plaza.
It follows a series of news articles the Times has published in recent months that described the frustrations of remaining retailers and business tenants at Pakuranga Plaza, and how the shopping centre has become a poor imitation of a once proud and vibrant place where people previously congregated to shop and socialise.
In late September, The Warehouse Group announced its 2024 financial results, “reflecting one of its toughest years on record”.
Its total Group sales were $3 billion, down 6.2 per cent compared to the 2023 financial year.
Sales for The Warehouse were $1.8b, down 5.3 per cent.
The Group reported a net loss after tax of $54.2 million, “significantly impacted by the disposal of Torpedo7 in March 2024”.
The Group’s chair, Dame Joan Withers, described the last financial year as “one of the most challenging in the company’s 42-year history”.
“The economic climate in Aotearoa New Zealand has been difficult for most retailers, with inflation, high interest rates, and a weak economy significantly reducing consumer demand.
“However, our trading performance and operational execution have fallen short and exacerbated these challenges.
“The poor financial performance we’ve reported this year is not acceptable.
“The board and executive leadership team are acutely aware of the disappointment shareholders will be experiencing and the big job ahead of us to get the company back on track.”
For earlier Times’ stories about Pakuranga Plaza this year, see:
https://www.times.co.nz/news/pain-down-at-pakuranga-plaza/
https://www.times.co.nz/business/cheerleader-collings-flies-flag-for-pakuranga-plaza/
https://www.times.co.nz/news/busway-construction-drives-pharmacy-from-pakuranga-plaza/
https://www.times.co.nz/business/mp-weighs-into-debate-over-problems-at-plaza/
https://www.times.co.nz/business/public-opinion-on-the-pain-at-the-plaza/
