Woolworths abandons Oxford Street Metro store plan
Woolworths has abandoned plans for a Metro store on Sydney's Oxford Street. Photo: Bloomberg

Woolworths abandons Oxford Street Metro store plan

Woolworths has abandoned plans to open a Metro store on Sydney’s Oxford Street.

Woolworths has cited “changing circumstances within their business” as the reason it cannot proceed with an agreed lease at 56-76 Oxford Street, Darlinghurst, according to the City of Sydney, which owns the property.

In June, the company opened its first Sydney Metro store on York Street in the CBD. The scaled-down Metro stores, catering to busy city workers, offer ready-made meals and a smaller grocery range.

The decision follows Woolworths’ recently announced review of its national store network, with a focus on consolidating poorly performing assets.

“We announced recently that we will exit a small number of Metro store leases early, including one that we will not be opening, which is the Oxford Street site,” a Woolworths spokesman said.

 “We currently have 32 Metro stores and it is an evolving format which we will continue to test and improve as we go along, and this includes ensuring the sites we operate in are best suited to meeting our customers’ needs.”

Negotiations for a settlement as compensation for breaking the lease agreement are under way between Woolworths and the City of Sydney, with the City stating the relationship between the two has been unaffected by Woolworths’ decision.

“We continue to have a good working relationship with Woolworths, who have two other stores in city property at the St Margarets development in Surry Hills and opposite Sydney Town Hall on George Street,” the City said in a statement.

The City is currently holding discussions with other retailers to secure a long-term tenant for the Oxford Street premises.

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