The Warehouse Group is consulting with staff about 190 potential job losses at its Auckland support office.
The Warehouse Group, one of the country’s largest retailers, may cut 190 jobs at its Auckland support offices as it responds to “challenging market conditions” and increased online shopping.
A spokesperson said the company shared a proposal with staff on Wednesday to make changes to its structure which may impact 190 roles at Auckland support offices. The changes did not involve store staff.
Retailers are bracing for a tough year as the economy is expected to slip into recession, with consumers tightening their belts and cutting back on spending amid rising interest rates and high inflation.
In late December, The Warehouse Group delivered a weak trading update for its key Christmas period, with lower sales and profit margins while costs increased as it invested in digital platforms.
* The Warehouse proposes closure of jewelery counters
* The Warehouse staff called to meetings amid redundancy rumours
* Staff at The Warehouse Birkenhead told the store will close next month
The company, which owns The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7 and TheMarket.com, said its sales dropped 5.5% during its key Christmas period from October 31 to December 26, compared with the previous year. Its gross profit margin for the period was down about 300 basis points.
In recent years, the company has been restructuring its business to cater for increasing customer demand for online and click-and-collect shopping, which resulted in hundreds of job losses at stores.
A company spokesperson said they were currently consulting with teams on the latest proposal for support staff.
More to come…