SELFRIDGES AXE 450 JOBS

HIGH-END department store chain Selfridges has told staff it plans to cut 450 jobs – around 14 per cent of its total headcount – with annual sales set to be “significantly less” than last year due to the pandemic.

Managing director Anne Pitcher said high streets were changing even before COVID-19 and the upmarket retailer has now been forced to make “fundamental changes”.

She promised staff who are on furlough that the fact they were not working now would have no effect on whether their role would be impacted. She also promised staff they would receive more information on today.

Ms Pitcher said in an email to Selfridges staff: “With sales this year forecast to be significantly less than they were in 2019, it will, without doubt, be the toughest year we have experienced in our recent history.

“As a family business, the hardest decisions are the ones that affect our people, which is why it pains me to share news today of the toughest decision we have ever had to take that we will, regrettably, need to make a 14 per cent net reduction in our headcount, approximately 450 roles.”

Selfridges’ announcement comes after it emerged the chancellor is considering a new tax on goods sold online in a bid to save the high street post-coronavirus.

The tax could be a two per cent levy on online sales, which would raise £2bn a year, or a charge on deliveries, as part of a campaign to cut congestion and emissions.

The move comes after Chancellor Rishi Sunak highlighted concerns that business rates are effectively penalising high street stores and giving internet retailers an unfair advantage.