Raeward Fresh Tower Junction in Christchurch is set to close its doors for good on May 23.
In a letter to employees seen by chrislynchmedia.com, the owners of the Troup Drive supermarket, Ross and Pip Freeman, stated the business has suffered due to reduced trade and rising costs over the past year, putting it under significant financial pressure.
"To address this we made what changes we could in September 2023 in order to reduce overheads. This did assist for a time, and we thank you for supporting us in that process,” the Freemans said in the letter seen by chrislynchmedia.com.
"Unfortunately, declining sales as a result of a double recession and high inflation are circumstances which we have no control over."
Wage increases, and the cost of power, insurance, rates, rent, and transport had not kept pace with sales, they said.
"This decision has not been made lightly, but unfortunately, we do not feel we have any other choice."
If the closure goes ahead, all staff roles would be disestablished.
The Freemans said they would support as many team members as possible to find new roles, either within the Foodstuffs network or elsewhere, chrislynchmedia.com reported.
Foodstuffs South Island general manager retail, wholesale and property Tim Donaldson told chrislynchmedia.com: "The owner-operators of Raeward Fresh Tower Junction have made the difficult decision to close the store after three years in business.
"After careful consideration and a review of the business, which identified changing customer needs and behaviours, the owner-operators have started the process of consultation with their team members.
"All the store team will be looked after and offered the opportunity to be redeployed at other Foodstuffs South Island stores, wherever possible.
"We’d like to take this opportunity to thank all our Raeward Fresh Tower Junction team, suppliers and customers for their hard work and support over the years, and the owner operators for the fantastic offering they’ve provided to their community.”
