Wesfarmers says Victoria should refine retail lockdown rules

Wesfarmers wants Victoria to refine lockdown rules so stores like Bunnings don’t have to stand down thousands of staff.

Bunnings stores are staying open for tradies but not for ordinary shoppers. Picture: Mark Stewart

Wesfarmers chief executive Rob Scott says shutdown laws unveiled in Victoria should be refined, with retail chains able to trade under tight safety and hygiene protocols.

The Perth-based conglomerate, which operates retailers like Bunnings, Kmart, Officeworks, and Target, is preparing to send thousands of workers home as the new stage four lockdown laws come into place.

Wesfarmers, which has 25,000 store workers in Victoria, must decide in coming days how many staff it needs to keep on to handle online orders, click and collect and trades services.

“But I am concerned that there will be quite a number that unfortunately we would need to stand down under these rules,’’ Mr Scott told ABC Radio National.

Wesfarmers is not eligible for JobKeeper wage support.

Mr Scott said there would be a “devastating” impact on household budgets.

The Wesfarmers boss said he had spoken to Federal Treasurer Josh Frydenberg before Victorian Premier Daniel Andrews announced the mass closure of workplaces across Melbourne, arguing for the importance of Bunnings and other crucial retailers remaining fully open.

Bunnings can remain open only for trades customers, while ordinary shoppers are barred from entering a Bunnings store and must use online ordering and click and collect.

Mr Scott said: “I accept that the government has worked around the clock to try come up with a set of rules, we have learnt a lot from the New Zealand shutdown, and what we learnt is that as people are confined at home for many weeks … that there are certain products particularly those you need to use around the house, to school your kids from home, to entertain your kids, that are going to be in very strong demand, so I think there are ways in which we have proven we can operate safely.”

He said large format stores like Bunnings and Officeworks could operate social distancing rules and maintain a safe in-store environment.

“We have proven through COVID that we have dramatically adjusted our operating procedures, in many cases it’s safer for our team members to be at work - there is more structure, more process than in many home environments,” Mr Scott said.

The state government needed to refine its shutdown rules, he said.

In a later statement to the ASX, Wesfarmers confirmed all its retail businesses such as Bunnings, Officeworks, Kmart and Target would be able to operate using online delivery and click and collect, but warned that the conglomerate earned around 17 per cent of its retail sales from stores in metropolitan Melbourne.

It said that 53 Bunnings stores in Melbourne, 34 Kmart and Target stores and 42 Officeworks stores would be affected by the stage four shutdown.

Worried about staff standdowns: Wesfarmers CEO Rob Scott. Picture: MARIE NIRME

Mr Scott was pleased the government recognised the importance of online and contactless click and collect sales.

“But the reality is that doesn’t work for all households, so I think there is an opportunity to refine the processes going forward,’’ he said.

“I think we need to adopt very much a risk-based approach, I accept the rules are out there and we will comply with the rules, we will adapt to those rules, the two things that are on my mind - and I should step back and say the Wesfarmers group we will get through this - I am more worried about the team members, I am more worried about the toll that this will take on households.

“I think there is an opportunity in a very measured risk-based way that we review this over coming weeks, as the New Zealand government did as they worked through their lockdown.’’

Mr Scott also told ABC he was pleased the Victorian government understood the importance of keeping distribution centres operating as well as supply chains and logistics.

Wesfarmers entered the COVID-19 crisis with a strong balance sheet, Mr Scott added, and the company would “get through this OK” as workers and employers adapted to the new realities of the health crisis.