COVID-19 muddies waters around store closures and job cuts.

 

New Zealand’s Warehouse Group, which includes the Warehouse Stationery chain, has been criticised by the country’s prime minister for closing stores soon after announcing the repayment of wage cuts in the wake of the COVID-19 crisis.

 

The Warehouse Group chief executive Nick Grayston said the company is repaying salary cuts because sales were better than expected under COVID-19 restrictions. 

 

Grayston said the world had changed "permanently" and "whilst we're certainly not out of the woods in the longer term, please know that our people have been our priority through this time".

 

A week after that message was sent to staff, The Warehouse Group announced it would be closing six more stores and cutting jobs at its headquarters, resulting in the axing of more than 1000  jobs.

 

Prime Minister Jacinda Ardern said she was "angry" with The Warehouse Group for announcing the mass job losses.

 

Ardern told Radio NZ the Warehouse Group had promoted itself as being "in the community and for the community".

 

Ardern said she'd been getting hundreds of letters from small-business owners trying to keep their staff and stay afloat by running down whatever reserves they had.

 

"The Government of course, and taxpayers, are taking a huge hit because we are prioritising keeping as many businesses and individuals employed and up and running as we can,” she said.