Big W To Close Nearly 20% Of All Its Stores Very Quickly
Posted on April 01, 2019
Woolworths has confirmed it will take a $370 million hit this year as it closes thirty Big W discount stores.
The supermarket giant said it would need to pay $270 million in lease and exit costs as it closes 16% of its stores.
“As foreshadowed at our half year 2019 results, while the recovery in trading for Big W is encouraging and there remains a further opportunity for improvement, the speed of conversion to earnings improvement is taking longer than planned," Woolworths chief executive Brad Banducci said in a trading update.
“This decision will lead to a more robust and sustainable store and DC network that better reflects the rapidly changing retail environment. It will accelerate our turnaround plan through a more profitable store network, simplifying current business processes, improving stock flow and lowering inventory."
It has not confirmed which stores will close but last week speculation named multiple stores that may in line.