The Warehouse is setting aside millions of dollars to buy land and build new stores, despite the recession eating into its profit.
The company's profit fell 15% to $76.8 million in the year to August as consumers reined in their spending.
While it expects consumer spending to pick up gradually, the country's largest listed retailer says it's too early to say the recovery is sustainable.
Even so, it expects to spend between $65 million and $85 million on property development in 2010.
Chief financial officer Luke Bunt says the company plans to open between five and seven smaller-format Warehouse Local stores in the next three years.
The retailer opened its first Warehouse Local store in Mosgiel two months ago and is preparing to open another in Auckland.
The Warehouse also plans to open five new big-box Red Sheds, bringing the total to 90 stores over the next few years.