A new supermarket opening in Kinloch this December is expected to create around 20 local jobs and bring greater grocery choice to the settlement and save a 20km drive to Taupō.
Family-owned supermarket operator Paddock to Pantry will establish a 500sqm grocery store in Kinloch, the first of more than 20 new outlets planned over the next five years as the company sets its sights on becoming New Zealand's third-largest grocery retailer.
The independent retailer says the Kinloch store is part of a $25 million nationwide expansion programme.
The new supermarket will be part of The Village Kinloch development on Kenrigg Road, being established on the former Trev Terry Marine site and will include other retail and commercial premises.
Belinda Walker, chair of the Kinloch Families Trust, says the prospect of the supermarket is exciting for the community.
“This is something that the Kinloch community's been looking forward to for about 10 years, actually. We did a whole lot of planning 10 years ago and definitely on the list was that kind of service... We haven't met the people involved yet, but super excited to have them in the community and to be the flagship or the first one of what they're planning to for the next few years sounds like a very, very interesting and exciting project.”
The company says the expansion programme overall could create up to 1,000 jobs nationwide and will target communities underserved by existing supermarket competition, including smaller centres where residents have limited access to everyday grocery shopping options.
The Kinloch opening will be followed by new locations on the North Island's East Coast and South Auckland in the first quarter of 2027, with the retailer aiming to open approximately one new store every three months.
Walker applauds the company’s ambitious program.
“It's definitely the service we've been looking to forward to for a long time.”
She believes there would be around 90 per cent support locally for the supermarket.
“And by the time we've got that little supermarket opening and we've got a couple of new restaurants and cafes opening imminently around the same time, it's going to be very different Kinloch for this Christmas.
“We have a lot of people moving to Kinloch that are working from home, and now you've got the kind of services that enables them to be based here. We've got a kindergarten coming in the next year or two and now we've got the services of shops and cafes. You really can run your business from this little piece of paradise in Kinloch.”
Walker says she is keen to look at some of Paddock to Pantry’s online offerings to check their prices.
“But I believe on the basics that they'll be competitive, and looking forward to seeing what they might have in the specialty range.”
She says the ready to eat side of the business will also be convenient.
“How handy would that be? But they've also announced a cafe called Batch Cafe right there.”
Between that and other enterprises already established, the settlement should be covered for a café fix, she says.
“We've got our Kinloch Club Café. We got the local village golf course have opened their little café that's been brilliant. So, we've gone from almost none to being well served this summer.”
Responding to community need
John Kennerley, Paddock to Pantry business manager, says Kinloch represents the type of growing community that has traditionally attracted limited supermarket investment.
He says the store will help meet demand from permanent residents, as well as the significant number of holidaymakers visiting at peak periods.
“Smaller communities can find themselves overlooked when it comes to supermarket investment because they don't have the population of a major urban centre.
“But that doesn't mean there isn't demand for grocery shopping options, particularly in growing communities where people want to be able to buy their everyday essentials locally.
“Kinloch is an opportunity for us to establish a grocery store that meets the needs of the community while creating permanent local employment,” he says.
A release on the new store says the Kinloch outlet will include a Paddock to Pantry foodservice offering, such as freshly prepared pizzas and other ready-to-eat meals.
Kennerley says combining grocery retailing with foodservice is part of the company's strategy to make smaller-format supermarkets commercially viable in smaller communities.
“We're looking at different formats that reflect local demand. In Kinloch, that means combining everyday grocery shopping with prepared food options,” he says.
Paddock to Pantry currently operates two physical stores, in Karaka and Kahawai Point, Glenbrook, alongside a nationwide online grocery business that recorded a 197 per cent increase in sales in the 12 months to July 31, this year.
The five-year investment programme will take its physical network to more than 22 stores nationwide and includes a proposed 5,000sqm distribution centre and plans to expand its delivery fleet to 25 vehicles.
Kennerley says improvements to road infrastructure between Auckland, Hamilton and Taupō have made it more commercially viable for independent grocery retailers to expand.
He says better transport connections are helping reduce the cost and complexity of servicing stores from centralised distribution facilities.
“Distribution is one of the biggest challenges for grocery retailers looking to expand into smaller centres. Improved road connections are making it easier to service communities like Kinloch from our existing distribution network,” he says.
The expansion marks a shift for Paddock to Pantry, which currently generates around 90 per cent of its sales online but expects that proportion to fall to approximately 33 per cent within five years as its physical store network grows.
The retailer says it has already established the purchasing scale, supplier relationships and distribution infrastructure needed to support further growth, with more than 99 per cent of its purchasing by value now sourced directly from manufacturers.
Kennerley says the company will continue targeting communities where it believes new supermarkets can operate sustainably and provide greater choice for consumers.
“Kinloch is the first stage of a much larger expansion programme, but each location needs to make commercial sense.
“We believe there are opportunities in communities throughout New Zealand where additional grocery competition can support local employment and provide residents with more choice,” he says.
