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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Primark to axe 400 shop floor jobs under major new restructuring plans

Primark owner Associated British Foods has said around 400 jobs are being cut across the fashion chain’s UK stores as part of an overhaul of its retail management team.

The restructuing will also include the launch of a new website - which will showcase more items, Primark said.

It comes as the business today warned sales in the past 16 weeks were 5% lower than pre-covid levels in the same period two years ago. Like-for-like sales were 11% below.

The retailer said the cost of materials and the supply chain crisis has been mitigated by a favourable US dollar exchange rate compared to last year and a reduction in store operating costs.

Are you affected by the job cuts? Get in touch: emma.munbodh@mirror.co.uk

Here are 21 shopping hacks to keep a note off the next time you head to Primark (Getty images)

However, it added that the business is still experiencing some delays on orders and "we expect longer shipping times to continue for some time".

In response, 400 shop floor jobs will be cut this year.

Are you affected by the job cuts? Get in touch: emma.munbodh@mirror.co.uk

Kari Rodgers, Primark Retail Director for the UK, told The Mirror: “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."

Associated British Foods today confirmed it is on track to launch a new customer-facing website in the UK by the end of March, and across all markets by the autumn.

The business has repeatedly rebuked calls to sell its good online.

"The new website will showcase many more of our products and will provide customers with product availability by store," a statement said.

Commenting on Primark's Christmas trading update, Richard Lim at Retail Economics said the business should turn its focus to online sales.

“A strong boost on last year's heavily restricted sales period is great news for the retailer, but there's a sober tone to these results.

"In the final run-up to Christmas, the retailer was dealt a significant blow as many consumers chose the safety of their homes instead of venturing out onto the high street to avoid catching Omicron before the big day."

Lim added: "Consumers are now well versed in switching online and as case numbers rose, their self-imposed restrictions were accompanied with a shift to alternative brands that could offer what they wanted.

"With no transactional website to lean on, Primark was left frustrated as vital sales were mopped up by their competitors."

Priamrk warned of delays on several occasions in the last year, owed to delays triggered by a combination of Brexit and the pandemic.

In September ABF said the business was "experiencing some delays to the handover of some autumn/winter inventory caused by port and container freight disruptions".

At the time, the clothing chain said its like-for-like sales were down by 24% compared with last year over a four-week period from mid-June.

However ABF finance director John Bason said the problem was "about delays rather than cancellations", adding: "All stores got this early autumn stock, we're fully stocked and ready for the season, there will be no shortages."

Primark reported one of its busiest periods in history after stores returned from lockdown last year.

The chain previously said "customers came back to our stores with enthusiasm and sales reflected some pent-up demand with very high basket sizes".

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