Ballantynes restructures to fit new retail environment

July 20, 2011

Ballantynes restructures to fit new retail environment

As Ballantynes works towards reopening in the centre of the city on October 29, it is looking to realign its business and staff numbers to what will be a different trading environment for the company.

Ballantynes has lost 2000 sq m of retail space in the central city and there will be an expected reduction in foot traffic in the CBD when the store opens in October. This is offset by the growth in direct business and the success of JB’s Café in Riccarton Mall and the Timaru store.

Mary Devine, managing director of Ballantynes, said that staff welfare has been of paramount concern and that is why the company has continued to pay staff for the last five months, but unfortunately this is now unsustainable for the company.

“We are going through a full consultation with staff on the proposed restructure. It’s important to note that we will still maintain staffing levels in excess of 250 in support and sales staff for our City Mall shop

“We have already had very good feedback from staff during this process including ideas such as job sharing. It is only when this process is complete that we will know exactly the appropriate staff numbers. On a more positive side, we are looking to increase staff in our Timaru store and Customer Services section,” she said.

Pre-earthquakes there were 52,000 people within the Four Avenues. This is significantly reduced and will remain so over the next few years while the rebuild takes place.

“For a company like Ballantynes, this is an incredibly hard step to take. But having lost space with the demolition of Anderson Building and Stables as well as New Zealand Gifts in the Guthrey Centre and uncertainty over the Contemporary Lounge, we really had to look at our entire staff structure This was also accentuated as from an insurance perspective we have to be seen to act prudently.

“We still remain fully committed to Re:Start and are funneling our energies into having the shop open for Cup Week. We are also planning a few other events between now and then,” she said.

The Anderson building is the newest structure on the Ballantynes site, and was built about 10 years ago. It extends from Lichfield St through to the Guthrey Centre and has been home downstairs to the store’s textile, china and stationery products, and the Dilmah Teahouse, interior design and furniture categories upstairs. The Stables, built in 1904, has the distinctive red brick façade on to Lichfield St. It is a relatively small space, which extends from the Lichfield St frontage to the store’s current pantry area.

“The proposed restructuring is a reflection of how Christchurch and the CBD has changed. However, as the rebuild gathers momentum and more people come back into the centre of the city you will see our staff numbers rise again,” she said.

ENDS

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