The Warehouse Group chief store operations officer Ian Carter said staff were yesterday told of a proposal to close the store early next year, when its current lease ended.
The proposal stated that "over the past few years we have seen customer shopping habits change, with more customers choosing to shop in larger The Warehouse stores and online".
"This has been the case in Mosgiel, with many in the area shopping in our nearby store in Dunedin South which also includes Warehouse Stationery."
It was committed to supporting its team as best it could during the process, he said.
"Should the proposal go ahead, we will be consulting with each of our team members to work through redeployment options to one of our other group stores."
First Union organiser Poppy Stowell said it was informed of the proposal to close the Mosgiel branch following a meeting with staff yesterday.
Union representatives were not invited to the meeting, she said.
“We’re urgently seeking detail on the proposal from The Warehouse Group and expect clarity and transparency on significant issues like redeployment and redundancy during this consultation period.”
It follows the closure of the Maclaggan St, Dunedin Central store, which was announced in August last year.