Foodstuffs plans $340 million Lower North Island distribution upgrade
Foodstuffs says its Palmerston North redevelopment will replace ageing facilities, with major stages expected in 2028 and 2030.

A redevelopment announced in September
Foodstuffs North Island announced a $340 million redevelopment of its Palmerston North distribution network on 15 September 2026. The facilities help supply New World, PAK’nSAVE, Four Square and Gilmours stores across the Lower North Island.
The co-operative says Project Fusion will replace the ageing Mihaere Drive facility, extend the Roberts Line site and address seismic requirements.[1]
The timetable runs over several years
The announcement scheduled bulk earthworks and civil works for October 2026. Foodstuffs expected the Roberts Line extension to begin operating in November 2028 and the new fresh, chilled and frozen distribution centre at Alderson Drive in April 2030.
Those are the timetable expectations in the September announcement. This article does not confirm that construction has started.[1]
What shoppers can take from the announcement
Foodstuffs says the investment should improve availability and make the network less vulnerable to disruption. Those are the retailer’s expected benefits, rather than measured results from a completed project.
The announcement does not establish a reduction in shelf prices. For a shop today, check the price and availability of the products at the store you plan to use.[1]