Selfridges Plans 2% Headcount Cut in Response to Market Conditions
Selfridges is preparing to reduce its workforce by 2 percent, with around 70 roles set to be eliminated, in the face of a challenging period for British retail. According to a memo obtained by WWD, Selfridges’ chief executive officer, Andrew Keith, informed staff that the job cuts would target “specific head office functions,” leaving store team members unaffected.
“In response to market conditions, and the evolving needs of our customers, we are proposing to make a number of roles redundant,” Keith shared in the memo, noting that the store hopes to provide “redeployment opportunities” for those impacted by the layoffs.
The memo also highlighted the impact of the absence of a tax-free shopping scheme in the U.K. on international sales, prompting Selfridges to act decisively in addressing changes from international and digital perspectives.
Amid continued calls from British businesses to reinstate tax-free shopping in the U.K., which was discontinued post-Brexit, the government has indicated its preference to maintain the status quo and retain tax revenues from tourists’ purchases.
Before the elimination of tax-free shopping, London and Bicester Village had become attractive destinations for international customers seeking VAT refunds on purchases. Efforts from industry stakeholders urging the government to revive the program have yet to yield results, despite a parliamentary debate on the issue last year.
The past year has seen challenges for Selfridges Group, including shareholder Signa Holding filing for bankruptcy. Following this development, Thailand’s Central Group, Signa’s partner in acquiring Selfridges, assumed control of the retail operating company, with consideration still ongoing for the purchase of the property division previously held by Signa.
Two years ago, Signa and Central jointly acquired Selfridges for a reported 4 billion pounds, dividing the retailer into property and retail businesses. Central’s commitment to supporting all European luxury stores, including Selfridges and other entities under the Selfridges Group, remains firm amidst its partner’s financial difficulties.