By SIMON HENDERY retail writer
Kmart staff hope for some indication today of the troubled Australian-owned chain's future.
The National Distribution Union, which represents half Kmart's workforce of about 1000, expects to be briefed today on owner Coles Myer's plans for the chain's 11 New Zealand stores.
Coles, Australia's largest retailer, has been
considering quitting the loss-making New Zealand operation for some time.
Last week, the business' most logical successor, The Warehouse, said it had abandoned negotiations with Coles over taking up the leases on the 11 stores.
The Warehouse said it had been interested in expanding into the Kmart sites which include prominent retail locations such as Auckland's St Lukes shopping centre and Mt Maunganui's Bayfair centre.
The Warehouse now plans to seek other sites to fulfil its expansion plans, which include opening second stores, or moving into larger premises, in a number of centres.
The union's retail sector secretary, Peter Monteith, said today's briefing from Kmart management - which he hoped would shed some light on the future for the chain - would be part of resumed collective contract negotiations between the company and the union.
Mr Monteith said the briefing was a requirement under the good faith bargaining provisions of the Employment Relations Act, which compel an employer to provide staff with pertinent financial information.
Talks between the union and the company were last held three weeks ago.
A Coles spokesman in Brisbane, Scott Whiffin, said the company continued to explore all options for Kmart. He declined to comment further.
The company, which runs Myer Grace Bros, Target and Kmart in Australia, has been under financial pressure, issuing three profit downgrades this year.
Last year, it significantly wrote down the value of the New Zealand Kmart operation (now valued at $A22.1 million) and sold the Katies fashion chain, which had stores on both sides of the Tasman.
Coles' problems turning a profit with Kmart mirror those of fellow Australian retail giant Foodland Associated, which this year decided to close its loss-making Deka chain.
