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Tag: big W

  • Big W enterprise agreement clears FWC

    Big W enterprise agreement clears FWC

    The Fair Work Commission has approved discount department store Big W’s new enterprise agreement, which will cover approximately 16,000 staff members across Australia.

    Big W’s previous enterprise agreement was created in 2012, and expired in 2015.

    The new agreement includes above-award wages and conditions with wage increases each year, penalty rates, increased casual loading, choice of superannuation providers and increased entitlements to redundancy payments.

    According to the new enterprise agreement, Big W staff will be paid between $21.51 and $23.12 an hour, depending on employee seniority.

    The agreement will take effect seven days after the approval, and has a nominal expiry date of May 5, 2022.

    “With the endorsement of the [Shop, Distributive and Allied Employees’ Association] and the [Australian Workers’ Union], we put forward an agreement that delivered improved conditions for our team while also supporting the continued turnaround of our business,” A Big W spokesperson said.

    “More than 90 percent of those who voted in the ballot supported the proposal, and we look forward to delivering the benefits of the new agreement to our team members soon.”

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  • Big W to shut down 30 stores over 3 years

    Big W to shut down 30 stores over 3 years

    Department store chain Big W will close approximately 30 stores and two distribution centres over the next three years in an effort to create a more profitable and sustainable store network in a changing retail environment.

    This is less than the 60 store closures that Macquarie Wealth Management predicted in a report last month, before Big W’s parent company Woolworths Group had completed its internal review of the discount department store business.

    The decision, which will see the number of Big W stores shrink by about 16 per cent, will cost the business $270 million in lease and store exit costs. This will impact Woolworths Group’s FY19 full-year result, alongside a $100 million cash impairment identified in the review.

    “While the recovery in trading for Big W is encouraging, and there remains further opportunity for improvement, the speed of conversion to earnings improvement is taking longer than planned,” Woolworths Group chief executive Brad Banducci said in a note to investors.

    “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 stockflow and lowering inventory.”

    In its report last month, Macquarie noted that half of Big W’s stores are located in challenging centres, many of which are regional, and that these locations are unlikely to give the brand the sales it needs to return to profitability.

    Woolworths expects its department store business to record a loss before interest and tax for FY19 of $80 to $100 million, slightly below the $110 million loss felt in FY18.