Australian Broadcasting Corporation (ABC), an Australian retailer of toys, general merchandise, clothing, and books, has announced plans to close its stores across the country.

The closure, which will take place in a phased approach, is expected to put close to 300 jobs at risk, AM reported.

The move comes as the company believes that it is challenging to operate physical stores as consumers increasingly switch to online purchases.

ABC currently operates 50 stores in the country, in addition to 78 ABC Centres in other retail outlets as part of its bricks and mortar portfolio.

As part of the new digital strategy, ABC will review its lease arrangements with landlords to develop a model to focus on digital sales through ABC Shop Online and other commercial retailers such as David Jones.

Commenting on the closure, ABC Commercial director Robert Patterson said: "This decision has not been taken lightly. However, this strategy will create a more cost effective, nimble and flexible approach to servicing customers.

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"The ABC is confident that this new strategy will ensure continued audience engagement. Consumers will still be able to purchase much-loved content both online and in stores."

The closure comes after the company lost $254m in funding cuts which saw over 400 job losses.