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Myer to close all stores, stand down 10,000 staff

February 5, 2021
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Myer to close all stores, stand down 10,000 staff
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Myer Melb

Myer has joined an extended record of outlets closing shops and standing down workers within the face of the general public well being measures being applied to comprise COVID-19 in Australia.

On Friday night, the division retailer introduced the short-term closure of all Myer shops from shut of enterprise on Sunday, March 29, for an preliminary interval of 4 weeks till April 27.

Roughly 10,000 workers throughout the shop community and head workplace will likely be stood down with out pay throughout that point. Full-time and part-time workers can have entry to annual go away and long-service entitlements along with authorities help.

A small group of business-critical roles will keep on at 80 per cent of their regular salaries to undertake important work and assist the web enterprise, which is able to proceed to commerce.

“The choice to briefly shut all Myer shops and stand down so many loyal and devoted crew members is likely one of the hardest selections this Firm has confronted in its 120 years of operation,” John King, Myer’s CEO, mentioned in a press release.

“Our focus should stay on working our enterprise in a way that protects the well being and wellbeing of our clients and crew members, while supporting the federal government, and the communities during which we function, in limiting the unfold of COVID-19.”

1000’s of shops gone darkish

The division retailer is simply the most recent main retailer to voluntarily shutter shops, regardless of buying centres presently being allowed to stay open.

Noni B proprietor Mosaic manufacturers closed over 1300 shops and stood down 6800 workers earlier this week, and Premier Investments, the corporate behind Smiggle, Peter Alexander, Simply Denims and different manufacturers, Lovisa, Kathmandu and plenty of others rapidly adopted go well with.

CEOs of those companies say that they had no selection however to shut. Foot visitors in buying centres final week was down 46 per cent 12 months on 12 months, in keeping with ShopperTrak, and gross sales are down between 40-60 per cent, in keeping with a latest survey of the Australian Retailers Affiliation’s members.

However the Morrison Authorities has been reluctant to impose a complete shutdown, saying that it might spell catastrophe for enterprise house owners and price folks their livelihood.

Solely pubs, cinemas, casinos and different leisure venues, magnificence remedy and waxing companies and tattoo and therapeutic massage parlours have been compelled to shut, and eating places and cafes have been restricted to takeaway and residential supply, although all indoor venues have been instructed to cut back their capability to 4sqm per particular person.

CEOs name for shutdown

At a press convention on Friday afternoon, Prime Minister Scott Morrison indicated states had been more likely to set off broader shutdowns earlier than the Federal Authorities.

NSW and Victoria are reportedly getting ready to stage 3 shutdowns, which might pressure all non-essential companies – every thing besides supermarkets, pharmacies, petrol stations and well being amenities, for example – to shut.

In the meantime, some enterprise leaders are starting to specific frustration on the Federal Authorities’s sluggish response.

“I’m actually indignant the federal government hasn’t executed one thing,” Justin Levis, Cue’s government director, instructed The Australian Monetary Overview on Friday.

Cue is closing shops throughout Australia on Saturday, although retailers might face authorized points in the event that they shut shops and stand down workers with out being required to take action by the Authorities, in keeping with Levis.

Lease nonetheless an isssue

A number of retailers have mentioned they received’t pay landlords whereas their shops are closed.

On Friday, the Prime Minister mentioned the nationwide cupboard was discussing a “hibernation” possibility for companies, which might tackle the issue of accumulating rents and different money owed throughout a shutdown, however he didn’t present any particulars.

Gerard Dwyer, nationwide secretary of the SDA, mentioned the closure of Myer shops displays the pressing want for a retail rescue bundle, together with a wage subsidy for retail employees, the underwriting of a line of credit score for retailers and a few type of lease aid.

“What number of extra companies must shut up store earlier than the federal government acts to make sure there’s an economic system to talk of as soon as the COVID-19 emergency peaks and passes,” Dwyer requested.



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