Warehouse confirms interest in K-Mart sites

By Phil Boeyen, ShareChat Business News Editor

Friday 24th August 2001

The Warehouse (NZSE: WHS) has confirmed it's been looking at leasing the K-Mart sites in New Zealand but says it will not be leasing them all.

There's been considerable speculation as to the future of the K-Mart sites, which tend to be anchor tenants at a number of prominent shopping centres in New Zealand.

K-Mart's owner, Australian retail giant Coles Myer (NZSE: CML), has flagged the sale of the New Zealand chain for some time.

The Warehouse says discussions have taken place regarding leasing the sites.

"We now advise that this opportunity will not take place as a single transaction. There may be the opportunity for single site transactions over the coming months."

K-Mart's imminent departure from New Zealand is likely to benefit The Warehouse, which already dominates the local retailing scene.

Earlier this year Perth-based Foodland (NZSE: FAL) decided to get out of discount retailing in New Zealand, closing down its tired Deka brand and converting a number of the stores to the more upmarket Farmers franchise.

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