Marks & Spencer to axe jobs, close stores
Güncelleme Tarihi:
AFP
Oluşturulma Tarihi: Ocak 08, 2009 00:00
LONDON - British clothing-to-food retailer Marks & Spencer said yesterday it would cut as many as 1,230 jobs and shut 27 stores as the group struggled with falling sales and a looming recession.
The news, contained in a Christmas trading update, added fresh gloom to the retail sector as a sharp economic downturn starts to bite, and comes one day after the shutdown of general retailer Woolworths.
Diving sales
Like-for-like sales - stripping out the effect of new floor space - dived by 7.1 percent in 13 weeks to December 27, 2008, compared with the same period of the previous financial year, M&S said.
The group added that 25 of the 27 store closures would target the company's "Simply Food" outlets specializing exclusively in food products, notably those that are small and under-performing. The move would mean the loss of 780 jobs.
In addition, Marks & Spencer said it planned to eliminate as many as 450 posts in administrative services and would reduce retirement benefits.The measures are expected to save 175-200 million pounds ($261-$298 million dollars) in the company's next fiscal year, which begins April 1.
Diving sales
Like-for-like sales - stripping out the effect of new floor space - dived by 7.1 percent in 13 weeks to December 27, 2008, compared with the same period of the previous financial year, M&S said.
The group added that 25 of the 27 store closures would target the company's "Simply Food" outlets specializing exclusively in food products, notably those that are small and under-performing. The move would mean the loss of 780 jobs.
In addition, Marks & Spencer said it planned to eliminate as many as 450 posts in administrative services and would reduce retirement benefits.The measures are expected to save 175-200 million pounds ($261-$298 million dollars) in the company's next fiscal year, which begins April 1.