Yesterday’s news that Primark will reduce 400 jobs in its store management department to cut costs was a setback for Primark employees.
High Street Discount retailer, in reaction to growing cost pressures and lower sales levels than pre-pandemic, will be cutting the positions at its 191 UK outlets.
Primark has 29,000 employees and stated it would start talks with the people affected by these cuts.
In response to increasing cost pressures, and because sales are still below their pre-pandemic level, 400 of its UK store managers will be fired.
Owner Associated British Foods (which also owns Twinings and Ovaltine) stated it would increase the prices despite rising supply and energy costs.
ABF said it would pass the increasing costs on to customers ‘where necessary’. The shares fell by 4.2 percent, or 89p to 2042p. ABF also cautioned that rising costs might impact its profit margins.
Group sales in the 16 weeks to January 8 were £5.6billion, up 16 per cent from a year earlier.
Primark sales were £2.7billion, 36 per cent higher than a year earlier, but across stores they were still 5 per cent down from pre-Covid levels.
Company claims that December sales suffered because shoppers became disinterested by Omicron.
Primark suffered a particularly bad impact from the lower footfall, as Primark does not sell online clothes.