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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.