Construction of the long-awaited next stage of Papamoa Plaza’s expansion will start this year, adding space for up to eight more retailers.

The large-format retail development, on land adjacent to the shopping centre’s main carpark, will help serve a fast-growing coastal community.

Nationally recognised homeware and pet retailers have secured space in the development, which will also include additional car parks.

The plaza has been described as Pāpāmoa’s “retail heart”, located near factory outlet mall Fashion Island, Pak’nSave and Mitre 10.

It has about 18,000sq m of retail floorspace on 70,000sq m of land.

The development’s lead broker and Colliers NZ national director of large-format retail, Leroy Wolland, told the Bay of Plenty Times this step had been in the pipeline for several years.

“The site has always been earmarked for future expansion, but we’ve waited until the timing was right.”

Wolland said the focus had been on ensuring they attracted the right mix of tenants to complement the existing centre and met the needs of the growing community.

According to the 2023 Census, Tauranga’s population grew 11.5% between 2018 and 2023.

Stats NZ data showed Pāpāmoa Beach’s population hit 37,800 last year, up about 3200 on the year prior.

The total trade area served by Papamoa Plaza had an estimated 73,290 residents in mid-2024.

 Leroy Wolland, leading broker of Papamoa Plaza retail expansion and Colliers’ national director of large-format retail. Photo / Supplied

“One of the key drivers has been community demand for a broader and more diverse retail offering,” Wolland said.

The new development will be approximately 3800sq m.

Wolland said the investment reflected confidence in Pāpāmoa’s continued growth.

“This [development] will prevent the requirement for people to travel to other large-format retail locations further away from Pāpāmoa to carry out their shopping.”

The new development will be built by Naylor Love, with construction scheduled to start later this year and finish by mid-2026.

Expressions of interest were open for retailers, with some international and national brands already confirmed.

Wolland said some were new to the market, and some existing retailers would be relocating. He could not share which brands were confirmed.

 Papamoa Plaza will expand, with up to eight new retailers. Photo / Andrew Warner

Kurt Thomson owns Thomson’s Butchery at the plaza and told the Bay of Plenty Times he was strongly in favour of an expansion.

“If it’s going to bring more people, and as long as they do it smartly, get the right stores and they’re not overlapping with what we already have, then I’m all for it.”

Thomson said the Plaza was “definitely busy” and the butchery had anywhere between 150 to 180 customers on weekdays and another 100 on top of that on weekends.

“There are always new people moving to the area, and I think it [expanding] can only be a good thing.

“The population here is growing, so obviously retail has to keep up with it.”

He said his only concern with developments was the potential disruption from the construction process putting customers off.

Double Teaspoons cafe owner Harry Aulakh said an expansion would be “really nice”.

“If people have got more options around this area, they won’t have to go towards Bayfair or Tauriko to access other shops.”

He hoped the new development in the plaza would “make a significant impact on bringing more customers and people here”.

“It will also create more job opportunities for people who are working and living in Pāpāmoa.”

Bay of Plenty National MP Tom Rutherford, who lives in Pāpāmoa, said Papamoa Plaza had become the “retail heart” of the community.

 Bay of Plenty MP Tom Rutherford. Photo / Alex Cairns

“We know that over recent years, it’s evolved from a local shopping centre to a genuine community hub.”

Rutherford said the new development was “absolutely critical” in a growing suburb and represented a significant economic boost.

“Growth without supporting infrastructure leads to frustration and often forces residents to travel further for their basic needs.”

He said retail investment would ensure the community remained liveable and self-sufficient as it grows.

“It’s about planning for the community we’re becoming, not just the one we are.”

His vision for Pāpāmoa was to be a “complete, sustainable, coastal community”.

“We’re growing and we’re maturing in exactly the right way.”