There seems a clear division in thought between older and younger posters here, with plenty of good points all round. One does need to keep in mind that HLG customers are mostly young(ish) and love shopping online though.
Competition will definitely make HLG a better, sharper operator which will help them in Australia where they have struggled in a more competitive environment. But how would HLG's profits look if you took their Australian margins and applied them to NZ?
Dato Tiger, in the large tropical island where I reside, Uniqlo often has massive displays of jackets and jerseys perfect for the Japanese or NZ market and hopelessly inappropriate for the tropics. So it is true HLG will always have something of a local advantage. Though H&M on the other hand is near unbeatable on price, environmental consciousness and style/practicality.