The Warehouse Group has confirmed it will close its Noel Lemming stores in Papanui and The Palms.

In a statement it says it will open a Noel Leeming Northlink store in Christchurch to replace them.

Over one thousand jobs could be lost across the country as the company looks to accelerate its planned changes due to Covid1-9.

Group CEO Nick Grayston says the company has also commenced a consultation process at its Northcote head office as it changes to meet customer needs by shifting to an Agile operating model.

He says “COVID-19 related events of recent months have made it even more clear that Agile is the right model for the Group and that there is an intention to move to this new way of working from August 31 2020.”

“The changes that are being proposed at the Group head office will likely see a reduction of around 100-130 roles.”

“Based on our insights into changing shopping habits and the anticipated economic impacts caused by COVID-19, we are accelerating some changes that had already been planned.”

“We will carry out a full consultation process but the proposals for change include the Noel Leeming Henderson Clearance Centre, and Tokoroa store, The Warehouse Whangaparaoa, Johnsonsville and Dunedin Central stores and Warehouse Stationery Te Awamutu store. We have confirmed that in July we will close our Birkenhead The Warehouse store and that same month we will open a Noel Leeming Northlink store in Christchurch, which will replace our Papanui and The Palms stores.”

The proposed changes to our footprint consider factors including proximity to our other stores, shopping habits of those in the area, store profitability and lease arrangements. The Group will continue to assess its store network and has flexibility in its lease renewal profile with approximately one quarter of its network coming up for renewal within the next 15 months.

“The proposals would see approximately 700-950 roles or 410 fewer full time equivalent store roles as a result of store closure and operating model changes.”