Money & Banking
BIG W reveals first stores to close: The critical mistake they made
BIG W has finally confirmed the closure of three stores in NSW. The stores are Chullora, Auburn and Fairfield, which will close in January 2020 after an agreement was reached with landlords.
The stores will continue to trade for the next six months but will close their doors at the beginning of the new year.
BIG W Managing Director David Walker shared his sentiments in a statement to The Daily Mail Australia.
“These are not decisions we take lightly and we regret the impact the closures will have on affected team members,” he said.
“We would like to acknowledge the support of the communities of Chullora, Auburn and Fairfield and the hard work and commitment of our store team members.”
He continued by saying:
“Supporting our team remains our priority and we are committed to doing the right thing by them.”
“Over the next six months, we will support our team and explore redeployment opportunities with team members who choose to continue their career at BIG W or with other Woolworths Group brands in the months ahead.”
BIG W has unfortunately struggled to be profitable in recent years, but closing the chain isn’t looking to be an option.
The retailer posted a $110 million loss for the financial year to June 2018 and a $151 million loss for the previous year.
The closure of 30 stores is about 16 per cent of the retailer’s store network.
Woolworths Group CEO Brad Banducci said in a statement earlier this year that the company would try to avoid employee layoffs by offering staff “alternative employment options” within the Woolworths Group.
“This decision will lead to a more robust and sustainable store and DC network that better reflects the rapidly changing retail environment,” Mr Banducci said.
“It will accelerate our turnaround plan through a more profitable store network, simplifying current business processes, improving stock flow and lowering inventory.”
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