Retail’s apocalypse is global. In just a few days the retail segment lost a few thousand jobs. But the count is constantly increasing as it’s being updated. The Coronavirus pandemic currently taking place is making this a global matter. The scenario seems to be just beginning to develop: many chains are having difficulties and reorganizing their business accordingly. Such reorganizations are almost always based on cutting stores and personnel. That’s what Nordstrom, John Lewis, Arcadia, TM Lewin and Esprit are doing.
Retail’s apocalypse is global
Let’s start with the USA. Nordstrom has decided to cut 6,000 jobs in June, mainly from its HQ, according to the Seattle time, which cites an ex-employee of the US-based retailer. A few days before this publication, the Sourcing Journal wrote that, according to anonymous sources, Nordstrom is ready to layoff between 20% and 25% of its national workforce. Such percentage would be equal to between 13,600 and 17,000 jobs, is the starting number is that reported at the end of 2019. These first 6,000 individuals are only the first ones.
After Harrods announced it plans on cutting about 700 jobs, the British retail segment continues to decay. John Lewis, the oldest mall in the country announced that both jobs and stores will be eliminated, as they won’t reopen after the lockdown. No exact numbers have been announced by the retailer that currently employs about 14,000 people, but a few hundred layoffs are expected. TM Lewin, meanwhile, said it plans of definitively closing down all 66 stores in the UK and consequently layoff 600 people, accorindg to the Retail gazette newspaper, which adds Arcadia to the list, The latter, which controls Topshop, Selfridge, Dorothy Perkins, Topman and Burton, announced it will cut 500 of the 2,500 people working in the HQ.
Esprit received authorization, from the Düsseldorf tribunal, to restructure the company. Part of this operation is laying off 20% of the workforce, along with 50 stores it has in Germany (half of all existing ones). Additionally, according to Fashion United, Esprit will layoff 1,200 employees, 800 from retail jobs and 300 from administrative positions in Germany, adding another 100 from the Hong Kong location.
- Brands have only one way to get rid of the stock (without discounts)
- US retail, JC Penney is appealing; Neiman Marcus takes a breath