Reject Shop closures: Company comments on future of stores in region

EARMARKED FOR CLOSURE: The Reject Shop has announced is will close seven stores across Australia. Photo: FILE
EARMARKED FOR CLOSURE: The Reject Shop has announced is will close seven stores across Australia. Photo: FILE

STAFF and shoppers can rest easy with no Reject Shops in the region impacted by the company closing the doors to some of its stores.

The Reject Shop announced recently that while it had forecast a $3.1 million to $4.1 million profit this financial year, it would actually experience a net loss of between $1 million and $2 million.

"The reduced earnings guidance reflects a tough trading environment in the retail sector which has continued to be impacted by low consumer confidence, flat wages, increases in the cost of living and a rapidly falling housing sector," the company's said in a statement.

"This has seen sales across the network fall well below expectations."

The company said its losses and inability to "achieve acceptable rental outcomes" on seven stores across Australia meant they would be closed by the end of June.

There are 10 Reject Stores in the region, they are located in: Kiama, Nowra, Ulladulla, Batemans Bay, Moruya, Bega, Cooma, Goulburn, Moss Vale and Mittagong.

A spokesman for The Reject Shop told Australian Community Media that these stores would not be closed.

"None of the stores you have listed will form part of that store closure program," he said.

"All staff from affected stores have been advised and the company seeks, wherever possible, to redeploy impacted team members to other locations."

Meanwhile, the future of the region's Big W stores still remains unclear after the parent company of the poor-performing retailer announced 30 stores would be closed during the next three years.

Woolworths Group announced on April 1 this year that the closures came following an extensive review into the retail chain and expected losses of $80-$100 million this financial year.

There are two Big W stores in the region, they are located in Mittagong and Bega.

This story Reject Shop closures: Company comments on future of stores in region first appeared on South Coast Register.