Fenwick cuts 400 jobs amid crisis for UK department stores
Written by News on 04/09/2018
Fenwick, the department store chain, is to shed 421 jobs as part of a cost-cutting plan following a slump in profits.
The retailer reported on Tuesday it had not been immune from the struggles facing its competitors, including Debenhams and House of Fraser – the latter of which fell into administration last month before being bought out by Mike Ashley’s Sports Direct.
It said management, support and shop floor staff would be affected by the job cuts – the result of a restructuring – taking its total workforce to 2,879 people.
Fenwick, whose roots can be traced back to 1882, posted a 93% fall in pre-tax profits to £2m in the year to 26 January.
It blamed the bottom line performance on a writedown on the value of its properties and costs associated with its turnaround, adding that a 3.6% fall in sales over the 12 months was a resilient result.
A spokeswoman said: “Our annual results reflect the challenging market conditions all department store groups are facing, including increased competition from online retail, declining footfall on the high street, and increasingly competitive price discounting – factors that have been exacerbated by a rise in the cost of living that has led to a fall in consumers’ disposable income.”
The firm, which has nine department stores, added: “The fact that sales fell only slightly last year demonstrates the strength of our local brand, and our product and customer service offer.
“As part of our programme we are investing in IT and other back office systems, in our flagship Newcastle store and in a new e-commerce offer, which will go live in early 2019.”
(c) Sky News 2018: Fenwick cuts 400 jobs amid crisis for UK department stores
