The Courier & Advertiser (Perth and Perthshire Edition)
Primark set to axe 400 jobs
Around 400 jobs are to be axed in fast-fashion chain Primark’s UK stores as the group overhauls its retail management team.
The retailer, which is owned by Associated British Foods (ABF), has launched a consultation with staff as it seeks to streamline its UK management structure.
The retailer, which employs 29,000 in the UK, expects the consultation to take place over the next couple of months.
Kari Rodgers, Primark retail director for the UK, said: “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.”
Details emerged as Primark revealed it had seen a hit to trading as the Omicron variant kept shoppers away from stores.
The group said Primark’s UK like-for-like sales were 10% lower in the 16 weeks to January 8 when compared with prepandemic levels two years ago, with so-called shopper footfall hit by the rapid rise in Omicron cases.
John Bason, ABF’S finance director, said: “Omicron caused a dip in the road for Primark in the UK and Ireland”.
He added: “We’ve already seen weeks bouncing back from that here, but elsewhere in Europe, this will take a little longer as they are not quite at peak Omicron is some countries.”
ABF said supply chain problems had begun to ease since last autumn, although it is still seeing some delays at ports and with shipments.
Mr Bason said Primark “will not raise prices” despite the surge in costs and that it will therefore need to find savings elsewhere in the business.
However, he said the “situation is different” in ABF’S grocery operations, where he noted that soaring commodity costs have affected key ingredients such as wheat.
Primark said it expects sales to be “significantly” higher year-on-year between now and April, now that it has all its stores open.
“It is difficult to predict future trading conditions with certainty, but we have seen an encouraging improvement in footfall in the UK and Ireland as the disruption from Omicron reduces,” a spokesman for the group said.