Woolworths Warrawong will close in less than a fortnight, after the company decided the store was too small and would not have its lease renewed.
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The store's 52 staff were told last week that the supermarket, located in Westfield Warrawong, would close for the last time at 6pm on August 2.
They have been invited to transfer to jobs at other companies within the Woolworths group.
Confirming the closure yesterday afternoon, a company spokesman said the store was too small to offer a full Woolworths experience and, with its lease nearly up, the decision had been made to shut up shop.
"We have decided to focus on our other stores in the local area as well as a new concept store in Shellharbour due to open in 2013," he said.
The Warrawong location had been a Franklins supermarket until 2001, when it was taken over by Woolworths.
The closure will come less than two months after a Kmart store in the same centre closed, leaving an estimated 130 full-time, part-time and casual staff to face an uncertain future.
Many of those staff may pick up jobs with Target, which was aiming to have a new 4620sqm store open in part of the old Kmart site before Christmas.
Discount supermarket Aldi will take up the remaining space.
In the weeks leading up to the Kmart closure, the discount chain said that a breakdown in lease negotiations with Westfield was partly to blame for their departure, but the Woolworths spokesman said the decision to leave Warrawong had not been influenced by the centre.
A Westfield spokeswoman did not return a call for comment.
It was not yet known if a new tenant has been secured for the Woolworths site.