Primark's owner has announced that 400 jobs are being cut across the fashion chain’s UK stores as part of an overhaul of its retail management team, PA reports.
Associated British Foods, which owns the fashion retail giant has revealed a hit to the fashion chain’s recent trading as the Omicron variant of coronavirus kept shoppers away from stores.
The group said Primark’s UK like-for-like sales were 10% lower in the 16 weeks to January 8 when compared with pre-pandemic levels two years ago, with so-called shopper footfall hit by the rapid rise in Omicron cases.
However, AB Foods said trading had improved in recent weeks as Omicron fears have eased and added that like-for-like sales were higher when compared with the final quarter of its last financial year, when stores were shut due to lockdown measures.
Total Primark sales were 36% ahead year-on-year, it added.
AB Foods said supply chain problems had begun to ease since last autumn, although it is still seeing some delays at ports and with shipments.
The group is offsetting higher costs by slashing operating costs and overheads, and said it was simplifying its UK store management structure as part of this programme.
Primark, which employs 29,000 staff in total across 191 stores in the UK, expects the consultation to take place over the next couple of months.
Kari Rodgers, Primark retail director for the UK, said: “The changes we’re proposing will deliver a simplified and more consistent management structure across all of our stores, provide more opportunities for career progression and offer greater flexibility.
“We are now focused on supporting our colleagues who are affected by these proposed changes and will be going through the consultation process.”
Primark said it expects sales to be “significantly” higher year-on-year between now and April, with all its stores open.
“It is difficult to predict future trading conditions with certainty, but we have seen an encouraging improvement in footfall in the UK and Ireland as the disruption from Omicron reduces,” the group said.
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