Assurance given on Mosgiel store

Countdown Mosgiel will continue trading until the new Mosgiel store opens despite the announcement yesterday some outlets in the supermarket chain will close.

Countdown will close six supermarkets in New Zealand before the end of their lease terms but the company remains tight-lipped on whether that affects any in Otago and Southland.

Australian parent company Woolworths announced to the Australian Securities Exchange (ASX) a more than $1billion plan to boost its bottom line that includes cutting 500 jobs in Australia and New Zealand.

Countdown spokesman James Walker said the six supermarkets to close in New Zealand included Rangiora Central in Christchurch, which will close on October 2, and Countdown Waihi, which has already been shut.

However, he refused to name the other four, for commercial reasons. One of them would close only temporarily, while a replacement was built, Mr Walker said.

He gave an assurance Countdown Mosgiel would remain open until the new supermarket in the suburb was built.

"The old Countdown Mosgiel will trade right up to the night before the new Mosgiel store opens,'' Mr Walker said.

Countdown has 183 stores across New Zealand and employs 18,000 people.

The number of staff affected by the proposed closure could not be given but Countdown would work to transfer staff to other locations where possible, Mr Walker said.

Countdown would open three new stores and two replacement stores in the 2017 financial year, including Countdown Mosgiel, he said.

First Union Otago organiser Shirley Walthew said the union had been informed of the proposed closures but it had not been told which supermarkets would close.

Ms Walthew had "a suspicion'' which Countdown supermarket in Dunedin would be most likely to close but she declined to speculate further.

Countdown staff in Otago had not expressed any concerns to the union about possible closures, she said.

She was meeting Countdown Otago and Southland group manager Nathan Lewis next week.

"I'll be quizzing him but at this stage all of our members look secure down this way,'' Ms Walthew said.

-Additional reporting by The New Zealand Herald

shawn.mcavinue@odt.co.nz

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