ABC to slash 300 jobs as it moves retail stores online – global

The ABC‘s retail revenue has traditionally been reliant on products like DVDs, music, books, magazines, toys, novelties and clothing.

A customer browsing the store explained that he was also very upset after hearing about the closures, “I have been browsing and not buying anything at ABC’s BBC DVD stores ever since I was a young man. They have always had anything anyone could ever want, from DVDs of BBC programmes about the history of railway, to DVDs of BBC programmes about the history of World War II”.

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”.

“They’ve made a lot of money over the years [but] they’re not making money now”, Scott said.

Up to 300 staff employed by the ABC’s commercial division through ABC Retail were briefed on the decision in a national video hook-up last night.

‘The ABC is confident that this new strategy will ensure continued audience engagement, ‘ head of ABC Retail, Regina Hoekstra, said in a statement.

The move will potentially affect hundreds of ABC employees, with ABC Retail now employing up to 300 people overall.

Staff will be consulted over the changes in coming months.

The network of ABC Shops was first slated for closure in 2008, with bookselling chain Dymocks reportedly lined up to take over the 43 stores.

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.

“All global studies, and the work we do at the Retail Doctor Group, show customers spend four or five times more if there is an omnichannel investment, that is physical stores and a website”, Walker says.

The problem for the ABC is that even loyal ABC shop customers are now moving online via the ABC Shop site and also other competitors and that’s another risk for the ABC. The ABC surely has a charter to bring culture and education and literature to the masses.

Dwindling DVDs and CDs sales had made it impossible for the stores to continue operation amid a “changing retail environment”, said the public broadcaster in a statement.

Now David Jones is yet to confirm if an outright sale is an option but the retailer’s chairman, Ian Moir, confirmed a review is underway when he spoke to The Business last night.