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Joint media release: Foodstuffs North Island and Hastings District Council

swansea rd housing

Groundworks are underway for more housing being built in the Flaxmere Town Centre

Foodstuffs North Island and Hastings District Council have mutually agreed to make the difficult decision to cancel a sale and purchase agreement for land in Flaxmere. This follows Foodstuffs North Island’s conclusion that building a supermarket on the site in the current economic environment isn’t sustainable. 

Foodstuffs spokesperson Emma Wooster said: “Building a new supermarket can be a lengthy and unpredictable process, and since planning for the project started in 2021, a lot’s changed with the market conditions, making it much more expensive when it comes to building and fitting out a new store.

“We’re both really disappointed to not be able to go ahead with the project and we know this will also be disappointing for the community.  We’ve looked at it from every angle, but the market realities mean it’s just not feasible to go ahead with the build right now and deliver value.” 

Even though this particular project isn’t going ahead, Foodstuffs North Island is absolutely committed to serving and investing in Hawke’s Bay communities.  There are a total of 25 New World, PAK’nSAVE and Four Square stores in the region, which are all 100% locally owned and operated by grocers who live and work in their communities. Over a third of Foodstuffs North Island’s capital investment went into the region in the last 12 months, including a new $17m New World in Wairoa, and a new $20m transport hub in Hastings, which soon after opening played a key role in getting urgent supplies to cyclone hit areas. 

Hastings mayor Sandra Hazlehurst said she was very disappointed that the new supermarket was not able to proceed, but accepted that the challenges posed by the rapidly increasing construction costs over the past three years had made such endeavours difficult for such large projects.  “Our council is committed to creating a fit-for-purpose town centre for Flaxmere. We have commercially-zoned land that gives us options to advance this.” 

The current New World Flaxmere, which is locally owned and operated and employs 60 people, is fully committed to continuing to serve the community.   


20 April 2023

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