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The department store has also pledged to continue paying all its Dunedin staff while it works through options for the temporary site.
"We're committed to being part of the Dunedin community in the future and will provide an update as soon as we have new information to share," a spokeswoman said.
Kmart revealed this week it would not reopen the doors of its shop in Dunedin’s central city Meridian Mall.
The shop has been closed since New Zealand went into lockdown in late March.
In justifying remaining closed, Kmart cited concerns about seismic strengthening needed at the mall, which has a seismic performance rating of less than 34% of the new building standard.
The company decided not to renew its lease, due to expire in September, preferring to seek a site with seismic performance above 67%.
The company was not able to share details about the locations it was exploring in Dunedin, the spokeswoman said.
The Dunedin City Council confirmed it had been in contact with company representatives.
The council declined to comment further and did not answer a question about whether non-notified consent — a less onerous process than notified resource consent applications — was a possibility for any sites Kmart could be exploring.
Dunedin Mayor Aaron Hawkins said it was encouraging the company was assessing locations within the city.
Council staff routinely had discussions with "any number of large employers".
Meridian Mall manager the Oyster Property Group has consistently defended the safety of the building.
Retail asset manager Jennifer Andrews said a seismic upgrade was planned at the centre and the group was disappointed about Kmart’s decision to leave.
A new tenant would be sought.
"We’ve had a great relationship with Kmart for many years," she said.
"The centre will continue to be a popular shopping destination and a vital part of the city."