Britain’s Primark to cut 400 store management jobs

LONDON, Jan 20 (Reuters) – A plan to simplify British clothing retailer Primark’s in-store retail management structure will result in the net loss of about 400 jobs, the finance chief of owner Associated British Foods said on Thursday.

“A number of roles are going to be affected. Will there be a net reduction? Yes. And that net reduction is the 400 figure,” finance chief John Bason told Reuters.

Details of the proposals, described as “part of our ongoing programme to improve the efficiency of our store retail operations”, were first revealed in a trading update from owner Associated British Foods (ABF).

It pointed to an Omicron hit to sales at Primark followed by an improvement over recent weeks.

Like the rest of the economy it faces growing inflation pressures – but insisted it has no plans to put up prices.

Overall, the fashion retailer’s UK sales for the 16 weeks to 8 January were ahead of last year but still 10% behind pre-pandemic

The company said it faced a squeeze on its raw material and supply chain costs but said this had been mitigated by favourable currency exchange rates and a reduction in store operating costs and overheads.

Photo – EPA-EFE/FELIPE TRUEBA