Dunedin's newest supermarket, a second South Dunedin Countdown, is still expected to open in June.

A Countdown spokesman says progress on construction was initially slowed by difficult ground conditions.

The new building is situated next to the former Dunedin Gasworks on Andersons Bay Road.

However, although there were time pressures caused by the early delay, construction is progressing well.

Nationally, the switch from Woolworths to Countdown brands has proved a good move for parent company Woolworths New Zealand.

The company has just reported an 11% increase in gross earnings and now commands 40% of Kiwi supermarket sales.