The end of Big W? Woolworths names the first three stores it will close as it prepares to take a $370MILLION hit and shut down 30 across the country

  • Big W has confirmed the closure of three stores in Sydney as of early 2020 
  • Chullora, Auburn, and Farfield stores will close Big W Managing Director said 
  • The stores are the first of up to 30 that will close for the struggling retailer 

By DAILY MAIL AUSTRALIA

Published: | Updated:

Big W have confirmed the closure of three stores in Sydney. 

The three stores are Chullora, Auburn and Fairfield, which will close in January 2020 after reaching an agreement with landlords. 

The stores will continue to trade for the next six months.  

'These are not decisions we take lightly and we regret the impact the closures will have on affected team members,' Big W managing director David Walker told Daily Mail Australia in a statement. 

'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.'

Woolworths has announced its plans to close 30 Big W stores and two distribution centres over the next three years

Woolworths has announced its plans to close 30 Big W stores and two distribution centres over the next three years 

'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 struggled to be profitable in recent years but said closing the chain entirely was not an option. 

The retailer posted a $110million loss for the financial year to June 2018 and a $151 million loss for the previous year.   

Big W owner, Woolworths announced in April it will take a $370million hit as it closes the 30 Big W stores and two distribution centres over the next three years. 

The supermarket giant said the move was brought on by 'current trading and the outlook for the broader sector, including the continued customer shift to online.' 

The company has not revealed which other specific stores will close but confirmed distribution centres in Monarto in South Australia and Warwick in Queensland will be shutting down. 

There are currently 186 Big W stores across the country which have been around for four decades.

The closures account for 16 per cent of the brand's department store network

The closures account for 16 per cent of the brand's department store network 

The number of employees of Big W across Australia and Asia was estimated at about 22,000 in 2015. 

The 30 stores the brand is closing amount to about 16 per cent of the retailer's store network. 

Woolworths Group CEO Brad Banducci said in a statement earlier this year, the company would try to avoid employee layoffs by offering staff 'alternative employment options' 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,' 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.' 

Big W said they would provide employees and the wider community at least three months notice before the closure of any stores. 

 

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