Rumours are rife that 60 Big W stores are tipped to close as the discount department store struggles to compete with other big retailers.
Rumours that Walmart have looked at buying the strugggling retailer were this week dismissed by Roger Corbett the former CEO of Woolworths and a former director of Walmart.
The move would see the closure of up to one third of Big W stores at a cost of almost $800 million claims Macquarie Wealth Management.
The Australian shared that a report from Macquarie Wealth Management claims in their latest report that half of the Big W store network is located in challenging centres.
“Big W is highly exposed to regional areas … it is unlikely these locations will enable Big W to regain the momentum required for profitability. In a challenging retail environment, we see a reduction in store count as the most likely outcome from the review.
“Given the format of Big W stores, we believe it would be difficult to reduce space as Myer is doing and that outright store closure is more likely.”
The report argues that Big W should eventually return to profitability, therefore not justifying a complete closure of the chain, but that a more logical and cost effective strategy would be to “cut the tail” and drastically reduce the 183 stores operating across Australia.
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