NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

The Warehouse to repay Covid-19 wage cuts because sales were 'higher than expected' amid job losses

Amelia Wade
By Amelia Wade
Political reporter·NZ Herald·
9 Jun, 2020 04:32 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

In an earlier announcements the company said that it plans to close six The Warehouse, Noel Leeming and Warehouse Stationery stores costing up to 950 jobs. Video / NZ Herald

The Warehouse Group is repaying wage cuts because their sales during Covid-19 restrictions were "higher than expected".

Last week, the country's biggest retailer told staff they were its priority and it was in a position to repay salary reductions but yesterday announced it would axe more than 1000 jobs.

In an internal message, sent on June 3, chief executive Nick Grayston said "we want to give you back the reduction you took".

Since opening at alert level 2, immediate sales "have been higher than expected and we were able to open earlier", Grayston said.

READ MORE:
• Prime Minister Jacinda Ardern 'angry' at the Warehouse for axing more than 1000 jobs
• Covid 19 coronavirus: Warehouse Group proposes axing more than 1000 jobs
• The Warehouse to shut North Shore store, 40 staff affected
• Kmart makes move on central Dunedin site Warehouse plans to vacate

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"I want to stress though that the last few good weeks of sales do not come close to making up for the losses our business has realised since lockdown under alert level 4."

At the end of April, staff earning more than $60,000 were asked to take a 10 per cent salary reduction while those earning more than $100,000 were asked to take a 20 per cent cut.

Across its brands, The Warehouse Group took $67.7 million from the wage subsidy scheme.

Advertisement
Advertise with NZME.

Grayston told staff Treasury's predictions the economy would shrink by 4.6 per cent by June and unemployment could peak at 9.8 per cent meant he didn't think the "current sales increase will last".

"For us, that translates to less money in people's pockets and it is highly likely to translate into fewer sales. We will of course be keeping a watchful watch on where we need to adapt."

The Warehouse Group chief executive Nick Grayston is repaying salary cuts because sales were better than expected under Covid-19 restrictions. Photo / Jason Oxenham
The Warehouse Group chief executive Nick Grayston is repaying salary cuts because sales were better than expected under Covid-19 restrictions. Photo / Jason Oxenham

Grayston said the world had changed "permanently" and "whilst we're certainly not out of the woods in the longer term, please know that our people have been our priority through this time".

Yesterday, a week after that message was sent to staff, The Warehouse Group announced it would be closing six more stores and cutting jobs at its headquarters, meaning more than 1000 people's jobs would be axed.

Staff are understood to be fuming, with one set to lose his job saying the message about repaying salary cuts was posted the day after affected stores were told they'd be closing.

He called the move "heartless".

The Warehouse Group was approached for comment but a spokeswoman said she wasn't sure what they could add because Grayson was interviewed by the Herald on Monday about the job cuts.

The company said in a statement to the NZX yesterday the effects of Covid-19 made it "even more clear" it needed to move to an Agile operating model.

"Based on our insights into changing shopping habits and the anticipated economic impacts caused by Covid-19, we are accelerating some changes that had already been planned."

This morning Prime Minister Jacinda Ardern said she was "angry" with The Warehouse Group for announcing the mass job losses.

Advertisement
Advertise with NZME.

Ardern told RNZ this morning the Warehouse had promoted itself as being "in the community and for the community".

"I'm angry. If I'm speaking frankly."

Ardern said she'd been getting hundreds of letters from small-business owners trying to keep their staff and stay afloat by running down whatever reserves they had.

"The Government of course, and taxpayers, are taking a huge hit because we are prioritising keeping as many businesses and individuals employed and up and running as we can.

"I'd like to see the same attitude applied by some of our larger organisations in New Zealand - that's how I feel."

She later told media The Warehouse Group should "speak frankly" about some of the business issues it was going through, given it indicated the reason for the layoffs was not solely down to Covid-19.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Retail

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

11 Jul 07:43 AM
Premium
Shares

Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

11 Jul 06:25 AM
Premium
Retail

Push Gummies halts sales amid creatine content controversy

11 Jul 06:20 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

'Challenging conditions': Luxury retail giant DFS closing Kiwi stores

11 Jul 07:43 AM

Duty Free Shoppers is exiting the Oceania market after 30 years.

Premium
Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

Market close: 'Green shoots' for Ryman – positive reaction to earnings outlook

11 Jul 06:25 AM
Premium
Push Gummies halts sales amid creatine content controversy

Push Gummies halts sales amid creatine content controversy

11 Jul 06:20 AM
Watch: 'My raging backyard river' - North Shore homeowner fears stormwater torrent

Watch: 'My raging backyard river' - North Shore homeowner fears stormwater torrent

11 Jul 06:00 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP