Overhauls for chain stores as UK high street evolves

Chains: Debenhams and M&S make cuts as part of wider vision

Hundreds of jobs are under threat after high street stalwarts Debenhams and Marks & Spencer both revealed cuts.

In an investor update, Debenhams chief executive Sergio Bucher unveiled plans to close 11 warehouses and put up to 10 stores under review.

The move will impact a minimum of 220 jobs.

Within hours, Marks & Spencer CEO Steve Rowe also gave notice of changes that will impact on 380 store staff.

The company, seen as a barometer of the health of the high street, is to close six stores in England but has vowed to redeploy affected staff.

The company also said it would open 36 new stores in the next six months, creating 1,400 jobs in the process.

Mr Rowe said: “We will open new stores, some will reduce in size, some will move, some will close and others will convert to food-only. Each proposal we make will be very carefully considered with our colleagues and customers firmly front of mind. It is our intention that nobody leaves M&S and we will work as hard as possible to ensure that we can deliver against this promise.”

The overhaul outlined by Debenhams’ new CEO will see the group shut one of its three DHL-run distribution centres and 10 smaller in-house warehouses.

It is also mulling a move that could see 10 of its 176 stores close in five years.

The DHL warehouse employs 220 staff and will shut in two years’ time, but Debenhams hopes to redeploy many staff affected by the smaller closures.

Mr Bucher’s plan was revealed as Debenhams announced a 6.4% drop in pre-tax profits to £87.8 million for the six months to March 4.

The turnaround will also see the group cull in-house brands and leave some international markets, while also shifting around 2,000 staff to customerfacing roles.

This will see the group offer customers experiences as it battles against a wider trend to switch spending away from clothes towards eating out and holidays.