The latest news to hit the Business Section of National Newspapers;
Debenhams Axe 320 Store Managers and Blame Online Retailers.
Debenhams have dismissed over 300 Store Managers in an effort to reduce costs as they fight to reduce costs in their battle with online retailers.
Debenhams blame sluggish sales on the effect of online stores who now monopolise markets with their lower prices, like for like quality, and a superior service.
Leading Super Stores and High Street Businesses are announcing closures.
Debenhams are not alone, a number of the leading Super Store and famous High Street Businesses are announcing closures due to the competition from online superstores.
Debenhams share price fell by 24%, after a profits warning, and the announcement they would be axing of 320 Debenhams Store Managers is an attempt to avoid closing its struggling High Street Debenhams shops and Debenhams superstores.
Online stores offer like for like products up to 70% lower than High Street Stores.
High Street Shops are failing to compete with online operators who can up offer like for like products up to 70% lower than High Street Stores.
Retro Europe passes savings back to their clients
Online Cheaper Shopping Experience.
Debenhams who can trace their original store back to 1850, is not the only store reacting to the Online Cheaper Shopping Experience.
Asda, Marks & Spencer, Tesco, Sainsbury’s, Morrisons and B&Q have all announced plans to reduce expenditure as competition from online stores takes a bigger slice of their market.
320 positions are at risk of redundancy.
Debenhams released a statement; ‚As part of the implementation of the battle with online retailers, a review of our store structure at Debenhams has been undertaken. The review has identified significant cost savings by reducing the complexity of Debenhams Management roles in Debenhams stores as well as processes to optimise and standardise ways of working.‘
They added; ‚The effect is that potentially 320 positions are at risk of redundancy at Debenhams – approximately 25% of Debenhams store management roles.
Debenhams are currently consulting with individuals affected and will seek redeployment opportunities where possible. The job cuts at Debenhams are expected to be complete by the end of March.‘
Debenhams Share price is down 0.58 percent to 29.15p.
At present, Debenhams share price is down 0.58 percent to 29.15p, and Debenhams said it was operating in a ‚competitive and volatile‘ retail environment. As part of its cost savings drive, Debenhams plans to save £10 million this year and an extra £20 million a year thereafter.
Online Retro Furniture giant Retro Europe, responds to the plight of the High Street and Super Stores.
A spokesperson for Retro Europe, Europe’s leading online retailer of quality modern designer furniture said,
‚The demise of the High Street can not solely be blamed on the Internet. High Street Businesses have had nearly 20 years to prepare for the new buying habits of online consumers.‘
Buying online has revolutionised the modern designer furniture market.
‚The overall experience of buying online has revolutionised how discerning consumers spend their money, online retailers like Retro Europe are able to offer like for like Retro Furniture up to 70% cheaper than High Street Shops and Superstores.‘
Retro Europe passes savings back to their clients and offers more affordable, higher-quality, great designer furniture top their clients.
‚Our operating costs are minimal at Retro Europe, and we are super efficient in all departments of our modern designer retro furniture business. We pass these savings back to our clients. The reality is that today Quality Retro Furniture is cheaper than it was 5 years ago in most cases.‘
Retro Europe genuinely wishes Debenhams good luck.
‚There is a place in the modern designer furniture market for High Street Shops and Super Stores, and we genuinely wish Debenhams luck in their restructuring and hope they continue in business for many years to come.‘