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Shop Direct group cuts 1,150 jobs | Shop Direct group cuts 1,150 jobs |
(10 minutes later) | |
One of the UK's biggest home shopping and online retailers is to close its Merseyside call centre, with the loss of 1,150 jobs. | One of the UK's biggest home shopping and online retailers is to close its Merseyside call centre, with the loss of 1,150 jobs. |
The Shop Direct Group, based in Speke, employs 10,500 people and owns the Littlewoods and Great Universal catalogue brands. | The Shop Direct Group, based in Speke, employs 10,500 people and owns the Littlewoods and Great Universal catalogue brands. |
It said the closure of its Crosby call centre was part of its transformation into an online-led business. | It said the closure of its Crosby call centre was part of its transformation into an online-led business. |
A 90-day consultation with staff is already under way. | A 90-day consultation with staff is already under way. |
Despite the announcement, Shop Direct has described itself as a "strong and growing" business. | |
It reported healthy trading over Christmas with group sales up 9%, with online sales growing by 44%. | |
Our business is changing because the way our customers choose to shop with us is changing Chief Executive Mark Newton Jones | |
Shop Direct's online business accounts for 56% of its sales and this is predicted to rise to 70% by 2010/11. | |
Chief Executive Mark Newton Jones said: "We recognise that this will be a difficult time for those members of our team impacted by today's announcement. | |
"Our business is changing because the way our customers choose to shop with us is changing. | |
"We anticipate that 70 percent of our sales will be online by 2010/11 and, therefore, the future of our business is online-led. | |
"We are a strong and growing business. In order to maintain this growth, we need to continue to adapt and change to the needs of our customers." | |
Mr Newton said 250 of those staff affected by the cuts would be offered re-location. |