The Warehouse Group says it will cut up to 950 jobs as part of a restructure in which six stores will close. Around 1000 jobs are likely to be cut due to uncertainty in the market. total number of job cuts to over 1000. The retail stores earmarked for closure are The Warehouse in Whangaparaoa, Johnsonville and Dunedin central, and Warehouse Stationery Te Awamutu. The Noel Leeming Clearance Centre in Henderson and the Noel Leeming store in Tokoroa are also to close.
The Warehouse in Birkenhead is confirmed to close in July..
Group CEO Nick Grayston said that by the end of August, the company will move to an agile working model. As a result, up to 130 jobs will be cut at The Warehouse Group head office.
Company research shows that shopping habits are changing. COVID-19 has sped up plans to make stores more efficient. Store locations, profitability and lease arrangements were reviewed.
Operational changes and proposed closures are likely to result in the loss of up to 950 jobs in stores, and up to 130 jobs at head office. Further store closures aren’t ruled out.
The Group will continue to assess its store network and has flexibility in its lease renewal profile with approximately one quarter of its network coming up for renewal within the next 15 months.
Spending across The Warehouse, Warehouse Stationery and Noel Leeming had increased since moving to COVID-19 alert level two. Strong trading was seen as a release of pent-up demand and the company doesn’t expect this to continue under the economic fallout of COVID-19.
Due to uncertainty around trading performance, the Board said it would withhold full-year 2020 earnings guidance.
