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.
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.
The Woolworths Group has now finally confirmed some of the Big W stores that will be closing.
In New South Wales, the Sydney BIg W stores located in Chullora, Auburn and Fairfield will close their doors in January 2020 as the first step in the department store’s cost-saving strategy. However, the store will continue trade for the next 6 months.
“These are not decisions we take lightly and we regret the impact the closures will have on affected team members,” David Walker, Managing Director of BIG W, said in a statement.
Haven’t been following the Big W store closures? Watch the video below to get all caught up on what’s going down with Big W.
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