Job losses at The Warehouse? Stores to close for big announcement

The Warehouse Group is closing its 92 stores across the country this morning to inform staff about a proposed new operating model.

A spokeswoman for The Warehouse said the stores will open at 9am instead of 8am to allow time for a team meeting to discuss a proposal about how stores operate.

The spokeswoman said on Sunday "we won't have anything else to share before we've spoken to our team members tomorrow".

She would not comment on job losses, but First Union general secretary Dennis Maga said the new operating model could lead to fewer stores and fewer jobs.

The union, which represents about 2000 retail staff at The Warehouse, had received some information about the new model in confidence and would issue a statement after the meeting, he said.

"Members are expressing their frustrations. They would like to know and understand what this process is all about. They need to understand if they will keep their jobs after the consultation.

"They also need to know whether they still have a store to work in," Maga said.

In an NZX announcement on June 8, the country's largest listed retail company said it was moving to an agile business model, which would "likely see a reduction of around 100-130 roles" in its Northcote head office.

The Warehouse Group chief executive Nick Grayston. Photo / Jason Oxenham

It also plans to close six The Warehouse, Noel Leeming and Warehouse Stationery stores. The stores that face closure include: Noel Leeming Henderson Clearance Centre and Tokoroa store, The Warehouse Whangaparaoa, Johnsonville and Dunedin Central stores and the Warehouse Stationery Te Awamutu.

This follows earlier announcements that it will close its The Warehouse store in Birkenhead in July, and Noel Leeming stores in Papanui and The Palms in Christchurch.

The company said the proposals could cost up to 950 jobs. The group has already started consultation about job cuts in its head office as it powers on with its plans to go Agile from August 31.

Warehouse Group chief executive Nick Grayston said last month Covid-19 had "made it even more clear that Agile is the right model for the group".