Big W has today officially confirmed reports it is set to close 30 stores over the next three years, in news that will devastate staff and devoted shoppers.
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The Woolworth discount outlet brand is expecting a $370 million hit to its full-year earnings as it closes 16 per cent of its store network.
‘As foreshadowed at our half-year 2019 results, while the recovery in trading for Big W is encouraging and there remains further opportunity for improvement, the speed of conversion to earnings improvement is taking longer than planned,’ said Woolworths chief executive Brad Banducci in a statement.
Addressing the concerns of staff members who will lose their jobs, Bandicci insisted that redeployment will be offered here possible.
‘We understand the impact that the store and DC closures will have on our team and will endeavour to provide affected team members with alternative employment within the Woolworths Group where possible.
‘This decision will lead to a more robust and sustainable store and DC network that better reflects the rapidly changing retail environment.
‘It will accelerate our turnaround plan through a more profitable store network, and simplifying current business processes, improving stock flow and lowering inventory.’
A recent Macquarie Finance report predicted that regional areas will be heavily affected by the closures, but there have yet to be any specific locations announced.