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Birmingham Post
Birmingham Post
Business
Coreena Ford

Primark to axe 400 jobs across UK stores in management shake-up

Around 400 jobs are set to be axed across fast fashion chain Primark's UK stores as the group looks to overhaul its retail management team.

The retailer, which is owned by Associated British Foods, said it had launched a consultation with staff as part of plans to simplify its UK store retail management structure.

It is looking to make the management structure consistent across its estate of over 190 stores in the UK.

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While it is creating a new management level role as part of the move, it expects the changes to leave it with around 400 fewer retail managers.

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, all of which are designed to help us provide the best possible experience for both our customers and our colleagues.

"We are now focused on supporting our colleagues who are affected by these proposed changes and will be going through the consultation process."

Details of the job cut plans came as Primark revealed it had seen a hit to 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.

But 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 a year earlier, 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.

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