Schuh to launch redundancy process amid restructuring
Schuh has begun a voluntary redundancy process with its staff as it looks to cut costs across the business.
The Scottish-headquartered footwear retailer, which currently employs 4,269 people, revealed in November that it had hired 400 new employees in its most recent financial year.
However, in a statement to TheIndustry.fashion, CEO Colin Temple said that "due to ongoing challenging economic conditions and rising costs, we have made the difficult decision to restructure our business".
"We are going through a voluntary redundancy process in some areas of business. In the interest of respecting our employees during this time, we won’t be commenting any further," he said.
Pre-tax profits for the footwear chain hiked 56% to £21 million in the most recent financial year from £13.4 million, as UK sales rose 8% to £356 million.
Local Labour MP for Livingston Gregor Poynton has urged swift action in response to the announcement. He has written to Temple seeking clarity on the extent of the redundancies, the timeline for the restructuring process, and the support being provided to affected employees.
Additionally, he has called for discussions involving the company, the local authority, and the Scottish government to explore ways to minimise job losses.
Last March, Schuh strengthened its leadership team, hiring a new Chief Marketing Officer and Chief Digital Officer.
Schuh is not the only retailer cutting jobs, as River Island has enlisted advisors from consultancy firm AlixPartners to help manage costs and boost profitability, as the high street braces for the potential impact of Budget-induced tax increases in April.
In November, H&M also announced plans to close its Edinburgh call centre by the end of the year, incurring 150 job losses.
A spokesperson for the Swedish-headquartered retailer said at the time: "Having looked into the scope of our customer service set-up, increased competition in the market, our customers changing behaviours and expectations and operational costs, we have made the difficult decision to proceed with the proposed closure of our customer service site in Edinburgh by the end of the year."