The UK retailer, which sells clothing, food and household goods, said in a statement on Tuesday that cuts to its 78,000-strong workforce would be made in support positions, in regional management and in its UK stores, “reflecting the fact that the change has been felt by the whole company. “
“It is clear that there has been a material shift in trade, and although it is too early to predict exactly where a new post will regulate Covid sales mix, we must act now to reflect this change,” he said. added the company, which was founded in 1884 and now operates in 62 international markets.
The retailer said it has learned that employees can work more flexibly, and that some can switch between their food and clothing and departments at home. New in-store technology has “enabled us to reduce layers of management and overheads in the support office,” it added. The company expects that a large portion of the reductions will come through voluntary departure and early retirement.
Marks & Spencer CEO Steve Rowe said in a statement that the changes announced Tuesday “are an important step towards setting up a leaner, faster company to serve changing customer needs.”
The company said it expects to create a number of new jobs as it invests in its online business, in food sales and in redesigning its store portfolio.
The group posted a 19.2% decrease in revenue between the end of March and August 8, compared to the previous year, reflecting the collapse in sales of clothing and home products. Lockdowns closed stores for several months, and a 32% increase in online sales was not enough to offset the decline. Sales have improved since stores reopened in June, but remain significantly down on last year.
About 2 million new customers have shopped online and online purchases since the beginning of the year, accounting for 41% of clothing and household goods sales over the past eight weeks, the company said.
Marks & Spencer said sales in newer, out-of-town stores have almost recovered to last year’s level, while stores in city centers and some shopping centers are still “severely affected by social distance and reduced footfall.”
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