M&S to cut 7000 jobs despite food sales holding firm
Retailer Marks & Spencer has announced plans to cut a further 7,000 jobs, in addition to the 950 announced last month, as the economic realities of Covid-19 bite deeper into the retail sector. Whilst food sales have not been majorly impacted (down 1.1% in the 19 weeks to August but up 2.5% in the last 8 weeks), the retailer has not seen the same food sales growth experienced by competitors and the negative impacts on clothing and home goods sales have been more marked (down 49.1% and 29.9% in the corresponding timeframes). Overall sales fell by 19.2% in the 19 weeks to August.
With consumer demand on the high street yet to fully recover and with the growth in online shopping, the company described the proposals as “an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”
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