Job losses likely as The Warehouse closes regional distribution centres

Sunday, 26 May 2019

The Warehouse is adopting 'off-price' retailing.

The Warehouse has confirmed 150 jobs are in limbo as it proposes to centralise online deliveries to a single distribution centre.

The retail giant also plans to move part of its call centre services overseas and to trial a controversial new staff rostering system that has many more worried about their jobs.

Eleven regional distribution centres would be closed and consolidated into one central facility.

A spokeswoman for the retailer said the move would improve the company's online shopping service by ensuring all items in an order were delivered at the same time. Under the current system items were sent separately from different parts of the country.

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* Behind the desk: The Warehouse chief executive officer Nick Grayston**

The new distribution centre would create about 100 jobs, but it was too early to say if any of the 150 affected staff would be redeployed, she said.

'We are working with affected team members to gather their feedback before any decision is made.'

A new rostering system for shop staff would be trialled next month in a bid to adapt to changing shopping habits.

The Warehouse NZ chief executive Pejman Okhovat says the retailer will change rosters and hours to improve the in-store customer experience.

Chief executive Pejman Okhovat said in a statement the retailer was consulting with staff on what their shift and hour preferences were.

'It is too early to be able to understand how many may be impacted by the change,' Okhovat said.

'Until August last year, [The Warehouse's operations] had remained largely unchanged for several years despite significant changes in customer expectations and the way we run our stores.

Are you affected? Email anuja.nadkarni@stuff.co.nz

The stores involved include Tauranga Crossing, Rotorua, Hastings, Napier, Taupo, Fraser Cove, Papamoa and Thames.

First Union national organiser Kate Davis said staff were told about the roster pilot about two months ago.

'Redundancy is going to be the outcome of this pilot,' Davis said.

She said the changes were 'significant' and had affected the mental health of some staff as their hours and shifts were up in the air.

'Workers have been issued rosters with no hours on them and they then have to apply for the hours.'

'We've been receiving many calls from people that are incredibly troubled that they're going to have no hours by the end of the process, or their hours will be so reduced that they will lose their tax credits in the Working for Families scheme.'

The Warehouse will also be restructuring its call centre with changes including increased service hours and adding flexibility, particularly around scaling-up during peak periods such as Christmas, Okhovat said.

The spokeswoman said it was considering outsourcing part of its call centre services overseas.

Davis said the overseas call centre could potentially mean some job losses.

In July last year the retailer announced plans to refine its store leadership structure, affecting up to 140 jobs at 92 stores.

The change removed assistant store manager and supervisor roles.

Online shopping was one of the fastest growing parts of The Warehouse's business and reflected the changing shopping habits of customers, the spokeswoman said.

The new distribution centre would feature a world class warehouse management system, she said.

'The pilot will test changes to roster hours and assess the impact of the changes which we anticipate will enable a more consistent customer experience in store, support better store planning, improve job satisfaction for our teams and ensure a fairer allocation of available hours for team members,' Okhovat said.

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