Primark to cut 400 jobs across UK stores

In another hit to the UK high street, Primark owner Associated British Foods (ABF) has warned of hundreds of job cuts at the fast fashion retailer to mitigate rising cost pressures.

The company said it will cut around 400 management jobs in the UK as it looks to “simplify” its in-store retail management structure.

Primark is “proposing removing a number of roles as well as creating a new entry-level management role”, a spokesperson told Sky News.

The retailer currently employs around 29,000 people across 191 stores in the UK.

The news come despite a 36 percent year-over-year increase in UK sales at Primark to 2.67 billion pounds in the 16 weeks to January 8.

But the retailer warned that while sales had been “well ahead” of last year - when there were widespread closures of its stores in the UK and Europe - the levels were still 10 percent below pre-pandemic levels.

Omicron takes toll

Primark said sales in the important Christmas trading period were impacted by a drop in footfall linked to the rapid rise in Omicron cases.

But it said sales have improved in recent weeks.

Commenting on Primark's trading update, Richard Lim, the CEO of Retail Economics, said: “A strong boost on last year's heavily restricted sales period is great news for the retailer, but there's a sober tone to these results.

“In the final run-up to Christmas, the retailer was dealt a significant blow as many consumers chose the safety of their homes instead of venturing out onto the high street to avoid catching Omicron before the big day.

“Consumers are now well versed in switching online and as case numbers rose, their self-imposed restrictions were accompanied with a shift to alternative brands that could offer what they wanted. With no transactional website to lean on, Primark was left frustrated as vital sales were mopped up by their competitors.”