Fears for Wigan and Leigh M&S jobs as retailer announces major cutbacks

The retailer, which has food stores at Robin Park in Wigan and Parsonage Way in Leigh, blamed the coronavirus pandemic for its latest shake-up.

M&S said the bulk of the cuts would be made across its stores, hitting around 12 per cent of its 60,000 shop-based staff, as well as a smaller number of support centre and regional management workers.

The roles are set to go over the next three months as M&S ramps up its overhaul, dubbed "never the same again".

The job losses add to many thousands already announced across the retail sector as the pandemic wreaks havoc on Britain’s high street, with department store chain Debenhams last week announcing another 2,500 staff cuts.

M&S expects a “significant” number of roles will be cut through voluntary departures and early retirement while it said it will also create some jobs through investing further in online warehousing and its new ambient food warehouse.

The group’s latest jobs cull follows 950 jobs job losses announced just last month across store management and head office roles.

But it insisted there were no further updates on stores closures as it ploughs on with an ongoing review of its shop estate.

It comes as M&S revealed total sales in its hard-hit clothing and home arm plunged 29.9 per cent in the eight weeks since shops reopened, with store sales tumbling 47.9 per cent and online sales surging 39.2 per cent.

It said sales declines were improving but that it was “clear that there has been a material shift in trade”.

“Whilst it is too early to predict with precision where a new post-Covid sales mix will settle, we must act now to reflect this change,” it said.

The group said the pandemic had shown staff can work “more flexibly and productively” and are able to multi-task and move between food, clothing and home departments.

Chief executive Steve Rowe added: “As part of our Never the same again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.

“These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”

In May, Mr Rowe revealed plans for his Never the same again restructure overhaul as he warned some shopper habits had “changed forever”.

Its latest trading update showed a mixed performance across stores, with those in newer out-of-town locations almost back to pre-Covid sales levels, but town centre shops and some shopping centres still “heavily impacted” by social distancing.

While clothing and home sales remained steeply lower, it said food sales rose 2.5 per cent in the 13 weeks to August 20 and also 2.5 per cent higher in the eight weeks since stores reopened.

Meanwhile Dave Gill, Usdaw National Officer, said: “This job loss announcement is yet another devastating blow for M&S staff and yet another bombshell for our high streets. The Government has a clear choice: do they want to see the high street go to the wall, or do they want to help save it?

“What the retail sector needs now is a tripartite approach of the Government, unions and employers working together to develop a much needed retail recovery plan. We have long called for an industrial strategy for retail to help a sector that was already struggling before the Coronavirus emergency. Now the situation is much worse.

“Usdaw has thousands of members working for Marks and Spencer and the staff now, more than ever, need the representation and support of an independent trade union; an experienced and knowledgeable union interrogating the company's business case for these job losses.

“We again urge M&S management to abandon their long-held resistance to allowing Usdaw to represent the staff. It is simply unjust that the company has made the decision not to engage with a trade union. The staff are telling us they want Usdaw to represent them, it should be their choice.”

Usdaw called for a recovery plan to be developed with trade unions and retail employers and include:

Fundamental reform of business rates. The Government committed to a review of business rates earlier this year, but assurance is needed that this will not be delayed further.

An immediate and comprehensive review of rental values and lease arrangements. In the short term measures are needed to prevent commercial landlords taking legal action for rental defaults during the lockdown period. In the medium term, a rebalancing of the relationship between landlords and tenants is required.

Reform of UK tax law to ensure that companies pay their fair share of tax through tackling tax avoidance and the use of offshore havens, with the aim of creating a level playing field between online and high street retailers.

Funding for local authorities so they can invest in their local economy, transport networks and high streets. We cannot revive our high streets if core services continue to be undermined

Investment in skills for retail workers, including through union learning and high-quality apprenticeships. This should include an in-depth assessment of emerging trends and potential skills shortages/gaps within the sector.

A new deal for retail, distribution and home delivery workers based around a real living wage and guaranteed hours.