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Legislative Council - Fifty-Fourth Parliament, First Session (54-1)
2019-04-02 Daily Xml
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Woolworths

The Hon. D.G.E. HOOD (14:42): My question is to the Treasurer. Will the Treasurer update the chamber on the announcement yesterday by Big W that they will be closing stores and their distribution centre at Monarto?

The Hon. R.P. Wortley interjecting:

The PRESIDENT: The Hon. Mr Wortley, please. It's not even witty. Treasurer.

The Hon. R.I. LUCAS (Treasurer) (14:42): Thank you. I thank the honourable member and also the Hon. Mr Wortley for allowing me to give an answer. It was obviously with some concern that, I am sure, all members of parliament but also members of the local regional Monarto-Murray Bridge community heard the announcement from Woolworths Big W in relation to the foreshadowed closure of the distribution centre there in two years' time, in mid-2021.

As Woolworths Big W announced, they have been haemorrhaging losses for a period of time, I think within the Big W division losing more than $100 million a year last year and foreshadowed again this year. As my very good friend Josh Peak from the shoppies union was quoted as saying last night on television, with which I furiously agree, online retailing is having a significant impact.

That's indeed something I have said in this chamber on a number of occasions in the nature of other debates that we have had. The reality is that online retailing and shopping are having and will have a significant impact on bricks and mortar retailers, not only in South Australia but nationally as well. The announcement yesterday was the closure of two distribution centres, South Australia and Queensland, and 30 stores nationally still to be identified.

There are significant issues that bricks and mortar retailers will have to address in the changing environment. As Mr Peak indicated—and Woolworths Big W indicated, when they made their announcement, this was a major factor—consumers are increasingly finding shopping via their mobile phone and mobile phone apps from home or their office and having goods and services delivered to their home or residential address a much more convenient way to shop, rather than going to bricks and mortar retail outlets. It is a reality. We can seek to bury our heads in the sand, if we wish, and ignore it or we are going to have to front up and address what is an increasing reality for the future.

There are a range of programs which will be available. I am pleased to see that Woolworths Big W have announced that they will work with each potentially affected individual employee over the next two years to see what redeployment opportunities exist to see whether there are redeployment opportunities within other Woolworths and Big W retail outlets in South Australia, in particular.

As was indicated by Mr Peak, again, there are a number of other Woolworths outlets in the local region. There is also a federal program called Stronger Transitions which is specifically designed to try to assist retrenched workers, particularly in regional areas, with additional assistance. We are hopeful that Woolworths Big W will be able to assist as many of those employees as possible in relation to finding other opportunities within the broader group.

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