HIGH ST FASHION VICTIMS
Debenhams to shut stores M&S branches also face axe
DEBENHAMS and Marks & Spencer have announced a wave of store closures, leaving staff fearing for their jobs.
Struggling Debenhams is axing up to 10 branches over five years and 10 small warehouses, ditching designers of its own label clothing and reviewing its overseas shops after a 6.4% profits slump to £87.8million. It currently has 176 stores in the UK.
Bosses refused to reveal how many staff will be affected, insisting no plans had been confirmed.
But it came as 220 workers employed by DHL were warned they face the chop with plans to shut a Northamptonshire Debenhams depot. And new chief Sergio Bucher said stores are looking “tired and old” and they will be given a shake-up. He is to move 2,000 staff from back office roles to the shop floor to improve customer service.
Hargreaves Lansdown brokers analyst George Salmon said: “If Mr Bucher can successfully oversee a transformation, it will certainly be a feather in his cap.”
And Global Data analyst Kate Ormrod believes the cull of Debenhams own brand labels was overdue. She added: “Refreshing its designers more regularly is a must. Debenhams must take action more swiftly if ranges are not working.”
M&S plans to close another six shops across the country, most selling clothing, homeware and food. But it insisted all 380 workers affected would be offered jobs in nearby stores and announced plans to open 36 food-only outlets, creating 1,400 posts.
Chief executive Steve Rowe blamed the “changing habits” of shoppers. He added: “Picking up food for now or tonight rather than doing one big shop are great examples of this and we are committed to adapting so we stay in tune with customers.” The closures come after a bad year in the high street with the collapse of BHS and 800 job losses at John Lewis.