ABC to close its shops across Australia   

Date
    July 23, 2015


The ABC will close its 50 retail stores around Australia, with up to 300 staff set to lose their jobs.     

The national broadcaster will instead move to selling ABC-related products online, and end leases with landlords.


    ABC managing director Mark Scott

"It is no longer possible for the ABC to sustain a large network of leased stores, traditionally reliant on DVD and CD formats," the ABC said in a statement.


Up to 300 jobs will go as the ABC closes its 50 retail stores.

However, it said ABC DVDs, music, books, toys and merchandise would still be "widely available" through ABC Shop Online and other retailers.

The ABC has 50 retail stores around the country and 78 ABC Centres in other retail outlets. The first ABC Shop opened 35 years ago.

The broadcaster's managing director Mark Scott said the 300 affected retail staff were told of the decision in briefings on Wednesday night.

"It's a grim outlook for them, they know that," Mr Scott told ABC News 24 on Thursday morning.   

"We know people have loved these shops ... [but] you cannot take money from broadcasting to prop up this retail chain."

Mr Scott said most of the stores would be open until Father's Day, while some would remain open until Christmas.

He said staff redundancies would be paid using borrowed funds from the "future earnings" of the ABC's commercial arm, and not taken from the broadcasting budget.

The decision to close the stores comes after the national broadcaster suffered $254 million in funding cuts, causing the loss of more than 400 staff.   

Director of ABC commercial Robert Patterson said the decision to close ABC Shops had not been taken lightly.

"This strategy will create a more cost effective, nimble and flexible approach to servicing customers," he said.

Head of ABC retail Regina Hoekstra said the broadcaster was confident the new strategy would ensure "continued audience engagement".

"Consumers will still be able to purchase much-loved content both online and in stores," she said in a statement.

​"ABC Shop is a trusted brand with a strong product offer, loyal customers and an engaged, committed team. ABC Retail will continue to adapt to an ever-changing retail climate in order to provide a sustainable retailing experience for customers."

The decision has been met with mixed reaction on social media, with many people lamenting the loss of the stores, which sold toys based on the characters of beloved Australian television shows including Bananas in Pyjamas and Play School.

Read more: http://www.smh.com.au/business/retail/abc-to-close-its-shops-across-australia-20150722-giiiqd.html#ixzz3gfR4T4Ow

It makes sense as more people buy the sorts of things you can get in those stores online instead. Will save taxpayers some dough.