Every fashion retailer is today closing stores, going into administration or axing jobs – revisiting business strategies to fight the crisis is the only road to survival.
River Island, the 7-decade-old British clothing retailer, reportedly plans to cut 250 jobs from its head office. This announcement is being seen as retailer’s plan to cut costs.
It is imperative to understand here that the sales for the retailer have been consistently going down ever since the pandemic hit the world and therefore cost cutting is one area River Island has been working on.
In a letter written to its head office staff, Will Kernan, Chief Executive, River Island, informed that it now has a requirement of 250 fewer people as it is in the process of re-establishing its business.
Making strategies to re-establish the business is important to survival. Will added that since the pandemic will change the marketplace for years to come, River Island has been quick enough to act so as to revisit company’s structure, affordability and strategy.
However, staff across all its 300 stores is expected to be not a part of any of these job cuts.
Only last week, Harrods had announced a cut of 700 jobs along with Arcadia Group which also said that it had plans to bring down its head office operations.
River Island, which offers womenswear, menswear, childrenswear and footwear, has around 350 stores in the UK, Ireland and many other countries across the world. It generates revenue of £877.7 million.