We have some sad news for traditional retail fans: The ABC has announced the closure of all of its stores as it moves to an online retail model.
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PETER RYAN: That’s right Liz and the ABC now has 50 stores around the country; 78 ABC Centres in other retail outlets as part of its fading bricks and mortar portfolio.
ABC Retail will review the lease arrangements for its 50 stores, which employ around 300 people, to implement its “phased exit” strategy.
Staff were informed of the decision on Wednesday night, ABC’s managing director Mark Scott said.
Mr Scott said, staff redundancies would be paid not from the broadcasting area but borrowed from the “future earnings” of the commercial wing.
“However, ABC DVDs, music, books, toys and merchandise will still be widely available for customers to purchase through ABC Shop Online and other retailers”.
MARK SCOTT: The basis of these stores of course for many years has been books and CDs and DVDs and particularly, everyone knows the CD and DVD businesses have radically changed.
ABC Commercial is responsible for the management of a range of wholesale businesses alongside ABC Retail.
The Community and Public Sector Union (CPSU) said the announcement was another blow to the ABC workforce that was still reeling from the 400 job cuts after last year’s funding cuts.
“I accept that this is partly a result of disruptive technology and that retailers have got to re-invent themselves to ensure their longevity”, said ARA president Russell Zimmerman.
Now while the ABC says the ABC Shop model is unsustainable, an ABC spokesman said there is no exposure to the taxpayer, but no doubt consumers, particularly those in rural and regional areas, will be concerned that given consumers in metropolitan areas will have a few more options than going online.
The unions called on ABC management to “come clean” on what other jobs would face the chopping block.
Robert Patterson, director of ABC commercial said: “The ABC Shops have been an important part of the ABC’s relationship with its audiences for the past 35 years and this decision has not been taken lightly”.
Head of ABC retail Regina Hoekstra said the new online focus would secure “continued audience engagement” from the ABC.
“This strategy will create a more cost effective, nimble and flexible approach to servicing customers”, he said.
According to the 2014 annual report, ABC Commercial contributed $19.19 million to the ABC’s net revenue in 2005-06 but this plummeted to $1.5 million in 2013-14.
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“We can not take money from broadcasting to prop up a retail business”, he told ABC News this morning.
