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| Version 1 | Version 2 |
|---|---|
| Shop Direct group cuts 1,150 jobs | Shop Direct group cuts 1,150 jobs |
| (30 minutes later) | |
| One of the UK's biggest home shopping retailers has announced plans to axe 1,150 jobs on Merseyside. | |
| The Shop Direct group, formerly Littlewoods Home Shopping, said it planned to close its Crosby call centre, with the loss of 1,000 posts. | |
| About 150 further redundancies will be made at the company's headquarters in Speke, Liverpool, and other sites. | |
| It said a growth in online sales had led to a fall in the number of customers ordering by telephone. | |
| Shop Direct said the closure of its Crosby call centre, one of seven across the UK, was part of its transformation into an online-led business. | |
| A 90-day consultation with staff affected by the decision is getting under way. | |
| Our business is changing because the way our customers choose to shop with us is changing Chief Executive Mark Newton Jones | |
| Despite the announcement, Shop Direct has described itself as a "strong and growing" business. | 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%. | It reported healthy trading over Christmas with group sales up 9%, with online sales growing by 44%. |
| Shop Direct's online business accounts for 56% of its sales and this is predicted to rise to 70% by 2010/11. | 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. | 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. | "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 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." | "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." |
| Workers stunned | |
| Mr Newton said 250 of those staff affected by the cuts would be offered re-location. | Mr Newton said 250 of those staff affected by the cuts would be offered re-location. |
| But workers at the call centre were left "stunned" by the announcement on Wednesday, the Usdaw union said. | |
| Spokesman David Johnson said: "Our members are understandably extremely shocked and distressed at this announcement which the company made just this morning. | |
| "We will be starting a consultation process with the company tomorrow and will be examining in detail their business case to close the Crosby call centre. | |
| "The company maintain that the decision is not due to the current economic climate but is necessary because of the steady decline of the traditional catalogue home shopping business as customers switch to the internet." | |
| Shop Direct Group includes the former catalogue shopping giants of Littlewoods, Great Universal and Kays. | |
| In addition to Crosby, the group has call centres based in Aintree, Preston, Bolton, Burnley, Newtown, Sunderland and Worcester. |