Australia's JB Hi-Fi books retail space

Australian-owned home entertainment store JB Hi-Fi is on its way to Palmerston North – prompting fears the retail giant could kill off business for the last locally owned CD store in town.

Plaza owner Kiwi Income Property Trust said yesterday that JB will be a major tenant in the third stage of the Plaza's re-development, due to open in March 2010.

Mango Music owner Matt Dinniss said he was aware JB was opening a store in Palmerston North. He was sure it would have some impact on his business, but that would depend on how big JB would be.

"It really depends on what they put in there. A group like JB – they focus on appliances."

JB used music sales to hook customers, Mr Dinniss said.

Kiwi's development manager Steve Lewis said JB's store would require an extra 1100 square metres of retail space to what was planned, which would come at the expense of a planned car park. About 60 parking spaces had been scrapped.

"It's just a part extension of the shopping centre at the retail level."

Leasing the retail space in The Plaza's new wing was "progressing very well".

About 86 per cent of total retail space in The Plaza as a whole had been leased, he said.

A JB Hi-Fi spokesman said it was too early to talk about anything specific to do with the Palmerston North store.

- © Fairfax NZ News