24 June 2015

Foodstuffs looks at closing its cash and carry stores amidst community opposition

Local supermarket giant Foodstuffs is proposing the closure of 5 of its 12 Gilmours and Toops food trade stores in the North Island, but FIRST Union General Secretary Robert Reid is questioning the business case to support the closures.

“Foodstuff’s proposal could see almost 130 jobs disestablished across Gilmours and Toops stores in Henderson, Panmure, Rotorua, New Plymouth and Napier with the 7 remaining stores transitioning to an owner-operator model under a new brand.”

“Yet, in the upper North Island where Gilmours stores have already transitioned to the owner-operator model, workers have reported little to no improvement in business,” says Reid.

“It seems counterintuitive to extend a model which has yet to prove successful.”

“Meanwhile, in Napier the local business community is joining forces with workers to save their Toops warehouse. The community held a rally outside the store last Friday with local MP Stuart Nash and Labour leader Andrew Little. Large and unexpected closures like this cause significant hardship for workers and their families and what Hawkes Bay business owner is going to drive 4 hours to Palmerston North and back to purchase food supplies?”

“We are urging Foodstuffs to reconsider their proposal,” says Reid.

It is understood that Foodstuffs will announce a decision this Friday.

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