400 Primark workers will lose their jobs as part of a British Foods’ (its parent company) restructure of its retail management team. 

The retailer blamed the rising costs of raw materials in its supply chain. It also said the lower footfall was due to the rise of Omicron cases since December, but expected this quarter to be significantly better than a year ago.

Consultation process

Primark has around 190 shops across the UK and employs 29,000 staff. It will have a consultation over the next few months and also create a new management level. 

Primark retail director for the UK, Kari Rodgers said the group was now focusing on supporting colleagues who will be affected by the proposed changes and will be going through the consultation process. 

She added: “The changes we’re proposing will deliver a simplified and more consistent management structure across all of our stores, provide more opportunities for career progression and offer greater flexibility.

Primark sales are high

After the lockdown last year, Primark said it had seen one of its busiest periods ever.

At the time, it said “customers came back to our stores with enthusiasm and reflected some pent-up demand with very high basket sizes.”

The FTSE 100 company said the outlet’s website will expand, and relaunched as part of the move.

Currently, shoppers cannot buy clothes on Primark’s site, but by March it is expected to give customers more information on what stock is available to them.

Primark said the “will showcase many more of our products and will provide customers with product availability by store”

Associated British Foods’ revenue in general saw an increase, despite the Primark downturns, and increased by 19 percent to £5.57 billion compared to the previous year. 

Primark’s sales for the same period were down by 11 percent and 5 percent lower than two years before.  

The retailer said it did not plan to raise costs with the changes but rival, Next, has said its costs will rise by 6 percent.