450 staff of the United Kingdom luxury retailer, Selfridges will lose their jobs as the effect of Covid19 bites the luxury industry harder.
The 14percent cut is one of the measures the store is taking to shore up cash after stores were forced to close for months during the lockdown.
Managing director Anne Pitcher warned sales will be significantly lower this year as COVID chaos keeps away the wealthy shoppers from the store.
It is “toughest decision we have ever had to take”, says Anne Pitcher, Selfridges Managing director. She warns sales will be significantly lower this year as COVID chaos keeps away the wealthy shoppers on which it relies.
“How we work, shop and socialise is changing,” said Pitcher. “Our high streets were changing rapidly before Covid-19 arrived. However, the speed and magnitude of what is happening right now, and the impact on trading means, we must make some more fundamental changes to our organisation.” Selfridges online sales doubled during the lockdown and it plans to step up investment in online retail.
Selfridges announcement comes after its rival Harrods cut 700 jobs earlier this month. At the time the Harrods chief executive, Michael Ward, blamed the cuts on physical distancing requirements and a lack of tourists’ visit to the UK.
Pitcher said 2020 looked likely to be the “toughest year” in the recent history of the 114-year-old business, which been owned by the British Canadian billionaire Galen Weston since 2003 and chaired by his daughter, Alannah Weston.
“Like many others, we are feeling the effects and acknowledge that recovery will be slow, with sales this year forecast to be significantly less than they were in 2019,” Pitcher said.