Struggling bargain chain department store Big W has finally confirmed that they will be closing 30 stores over the next three years Australia-wide due to falling profits.
Macquarie Wealth Management revealed the news in a client note on March 15, 2019, stating that they may close up to 60 stores Australia wide after losing $110 million last financial year and $8 million in the first half of 2019.
‘Partial closure of the most unprofitable and shorter lease stores is more likely,’ Macquarie said in the note, revealed in The Australian.
While Macquarie have not specifically named which Big W stores will be affected by the closures, last week it did say that regional areas could be hit hardest.
‘It is unlikely these locations will enable Big W to regain the momentum required for profitability,’ Macquarie said.
At present, there are around 30 stores located in rural and regional areas around Australia - leading local papers to question whether the Big Ws situated in their specific areas will be affected.
After a review into the loss-making franchise, parent company Woolworths announced that Big W will close 30 stores across Australia over next three years.
The brand has also announced that it will be closing two distribution centres.
Big W estimates that the decision to close 30 stores will result in a $370 million loss, a revelation shared with the Australian share market on Monday morning.
However, no locations have officially been confirmed as closing as yet, and the amount of jobs that are set to be lost hasn't been confirmed.
Woolworths did report that the company would aim to move affected employees into other areas of the business, where possible.
Although, News.com.au reports that a warehouse in Monarto, southeast of Adelaide, will close in the 2021 financial year, and one in Warwick, Queensland, will follow two years later.
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