Bunnings proposing closure of seven stores

Tuesday, 12 May 2020

Bunnings is closing a number of stores, it confirmed on Tuesday.

Bunnings Warehouse is proposing the closure of seven stores, affecting 145 staff, it announced on Tuesday afternoon.

Stores earmarked for closure include the Ashburton Warehouse, the Hornby and Hastings Trade Centres and four smaller format stores Cambridge, Rangiora, Te Awamutu and Putaruru.

The announcement comes after a 'network review' and due to the 'challenges of the recent trading environment,' the retailer said.

The company had informed staff of the proposal.

* Bunnings selling essentials goods online

First Union organiser Kirstin Miller said affected workers were in shock as the news had come 'out of the blue'.

'It’s an awful thing to be going through particularly right now when other employment options are going to be pretty far and few between,” she said.

There was a feeling among staff that the decision to close the stores had already been made, and labelling them 'proposed closures' was a way of going through the motions of a consultation process.

'It’s certainly what Bunnings have done in the past so there is reason for them to feel that way,' Miller said.

Staff had been told not speak to the media, but the union was challenging the retailer on this, she said.

The Bunnings statement said other factors beyond the lockdown had contributed to the decision, including lease arrangements, individual store performance and the suitability of locations. Some of the stores were always intended to be temporary.

Waimakariri MP Matt Doocey said his heart went out to the 21 staff affected by the closure of the Rangiora store, which opened its doors two years ago.

'Unfortunately, we are likely to see more of this,'' he said.

'I know from working with our businesses over the past few weeks that the impacts of Covid-19 have included businesses closures, income losses and unemployment.

'There are going to be people in our community who will need our support.''

Doocey urged people to shop local and back local businesses to prevent further job losses which would put huge pressure on local community services.

A review late last year saw Bunnings close three smaller format stores at Te Aroha, Waikenae and Paeroa.

Consultation with staff at affected stores will now begin. Pending the outcome of the consultation period, the seven stores would close by the end of June, with customers to be redirected to their nearest alternative

Bunnings New Zealand Director, Jacqui Coombes, said : “Our absolute priority is the welfare of the 145 affected team members. This news is understandably upsetting and we will be working closely with our team during the consultation period to discuss their individual circumstances, including redeployment to other stores if possible. 

'Despite the incredible efforts of our teams, the challenges at these stores have been exacerbated as a result of the Covid-19 environment and unfortunately these stores are no longer a viable part of our store network.

'While we have been able to leverage the financial position of the Bunnings network and the government subsidy to support our team throughout level 3 and 4 restrictions, ultimately we have to make the best decision for the long-term performance of our business moving forward which employs close to 4500 people,” she said.

The Bunnings Putaruru closure was planned prior to the lockdown. This store will close to the public on May 15 as originally planned.  

Earlier this month Bunnings Warehouse cut its salaried workers pay and hours by 20 per cent until it could trade 'normally' and has been working with landlords on rent reductions.

The statement said that Bunnings would now service the needs of its customers through its 46 other stores and had plans to open new stores at Westgate and Queenstown, and continue to develop its online presence.