UK home shopping retailer Shop Direct group to cut 1,150 jobs

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Wednesday, January 28, 2009

Shop Direct group, One of the United Kingdoms home shopping retailers are to cut 1,150 jobs as they shut down a call centre in Merseyside. The closure of the call centre was said to be part of the company’s transformation to an online-led business. 250 of the job loses are to be offered relocation within the company.

Currently 56% of Shop Directs business is in the form of online sales. They set for this to rise to 70% of sales within two years. Chief Executive of Shop Direct, Mark Newton Jones, said that Shop Direct is a strong and growing business and puts the cuts down to the way customers shop with the company.

"Our business is changing because the way our customers choose to shop with us is changing. 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," said Jones in a statement.

Over the 2008 Christmas period group sales were up 9% and online sales were up by 44%. According to the Liverpool Echo several staff were in tears after hearing the news and some collapsed.

A 90 day consultation is under way.