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WOW) to close 30 stores of size W

Wolters will have a $ 370 million hit in their results for the whole year, after deciding to close about 30 of their stores for a discount on the big W in the next three years, as well as two distribution centers.

The supermarket supermarket, which also confirmed a $ 1.7 billion ransom after selling fuel operations, said the hit would be made up of $ 270 million for lease and exit from closing costs of about 16 percent of its network of commodity houses, plus $ 100 million non-monetary assets damages.

Wolverts decided to close about 30 stores of size V.

Wolverts decided to close about 30 stores of size V.Credit:Glen Hunt

"As foreseen in our semi-annual results of 2019, while the recovery in the Big W exchange is encouraging and there is still room for improvement, the speed of conversion to improving earnings lasts longer than planned," said Woolworths CEO Brad Banduči, in an update on the trading.

"This decision will lead to a more sustainable and sustainable store and a DC network that better reflects the rapid change in the retail environment. This will speed up our turnaround plan through a more profitable storage store, simplifying current business processes, improving stock flow and reducing of the inventory. "

The large W comparable sales growth in the third quarter was about 6 percent, fueled by strong growth in transactions. Despite this, Woolworths said the improvement in profits is slower than planned and that stores are expected to report loss before interest and tax in fiscal 2019 from 80 to 100 million dollars, compared to a previous year's loss of $ 110 million.

More to come

AAP and BusinessDay

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