Smiths City intends to open a new store in Upper Hutt in March.
The store will be the second in the Wellington region, following the opening of a shop in the Porirua Mega Centre before Christmas.
Smiths City says a strategic review has identified Wellington as the best area for immediate growth.
The new stores will make use of the logistics already in place for the operations of LV Martin & Son, without increasing warehousing and delivery costs.