Selfridges announces plans to cut 450 jobs
Selfridges has announced plans to cut 450 jobs as the high street retailer faces it "toughest year" in its recent history.
Managing director Anne Pitcher said high streets were changing even before the coronavirus pandemic but it has now been forced to make "fundamental changes" to its operation.
The planned job losses amount to around 14% of Selfridges' workforce. The high-end department chain has four stores in the UK, including on London's Oxford Street, Birmingham's Bullring shopping centre, as well as the Trafford Centre and Exchange Square, both in Manchester.
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It remains to be seen if all of the stores will be impacted by the cuts.
In a letter to staff, Ms Pitcher said those currently on furlough would have no impact on whether their role could be axed. She also promised to provide more information on Wednesday.
She said: "As a creative business at the forefront of retail, we have a proud history of leading the way, 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 to stay ahead and realise a more sustainable future.
"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. 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, very regrettably, need to make a 14% net reduction in our overall headcount, approximately 450 roles."
Selfridges iconic flagship store on London's Oxford Street has been a stalwart in UK retailing since it opened its doors on March 15, 1909.
It remains the UK's second largest store after Harrods in Knightsbridge.
The cuts come amid a wave of redundancies in the retail sector, which has been particularly hard hit by the coronavirus pandemic.
John Lewis, Harrods, M&S and Boots have all announced cuts amounting to a combined total of more than 5,000 job losses.
Shoppers have been turning to online retailers for their clothes and other goods during the pandemic.
Chancellor Rishi Sunak is reportedly weighing up whether to implement a new online sales tax in a bid to protect high streets.
According to the Times, Mr Sunak is considering two types of online retail tax. One involves a 2% levy on all goods bought online, which is expected to raise around £2bn a year. The second involves a tax on consumer deliveries, which would also be expected to curb traffic and pollution.