Selfridges is set to make redundancies in its head office and in some retail stores as part of an efficiency drive.
In an email seen by This is Money, boss Andrew Keith told staff that some teams will be ‘resized and reshaped’ to ensure the iconic retail brand is ‘fit for the future, aligned, and working in the most efficient way’.
Selfridges, which in 2021 was bought by Thailand’s Central and Austrian property firm Signa in a deal worth £4billion, has been reviewing its ‘structures…costs… revenue lines, and… ways of working, from top to bottom’ as part of its ‘121 Strategy’, Mr Keith wrote in the email.
Selfridges flagship store on Oxford Street, London
As a result, the group will begin consulting with elected team representatives and applicable trade unions on a ‘proposed new shape of the organisation’.
This, he said, is intended to ‘unlock better ways of working and offer the potential to deliver long term sustainable growth and profitability for our business’.
Selfridges revenues jumped 28 per cent to £653.4million in the year to January 2022, according to its most recently published Companies House filing, with Covid-related store closures at the beginning of the period driving the group to a £38.1million operating loss.
This, however, was an improvement from the £136.9million loss the previous year.
In September, Selfridges’ new owners revealed plans to open small ‘regional’ department stores around the world, as well as new locations in the UK for the group’s growing stable of brands.
Then, in December, Selfridges said it planned to open a luxury hotel as part of a major revamp of its flagship store.
Staff will hear more on potential job losses on Friday from ‘executive director for people’ Maria Glasscock, who will provide details on how to nominate representatives, timing and process.
Mr Keith told staff: ‘We have a proud history of leading the way and, to maintain our position at the forefront of retail, we must keep evolving.
‘A critical part of this is making sure we are fit for the future, aligned, and working in the most efficient way to achieve our 121 goals.
‘We’ve been reviewing how Head Office including some small teams in retail who support our stores are organised to best deliver for our customers.
‘To do this involves looking at our structures, our costs, our revenue lines, and our ways of working, from top to bottom.
‘Regrettably this is likely to mean some of our head office teams, including some small teams in retail who support our stores, will be resized and reshaped.’
He added that the decision has ‘not been an easy one’ but it is ‘right for the long-term sustainability of the business’.
Mr Keith said: ‘There is never a good time to make these sorts of changes. The coming weeks will be difficult for some of our team members.
‘I know we will do our very best to support each other and I want to thank you in advance for your strength, empathy, and professionalism.’
Selfridges has not responded to request for comment.
