Manchester retailer to axe 290 jobs and close 20 shops

Manchester based retailer N Brown is the latest retailer to announce it is to close stores and axe jobs in a bid to balance its books.

The firm, which owns the brands High & Mighty and Jacamo & Simply Be, is to close 20 shops with the loss of 240 retail jobs. The firm also owns the JD Williams brand.

A further 15 head office jobs and 35 distribution roles at Duke Mill in Shaw are also under threat.

The news came in a trading statement this morning and against a backdrop of tough trading on the high street.

Revenues were broadly flat but high street stores have struggled due to a change on customers’ shopping habits.

Mothercare, House of Fraser and New Look are just a few of the retailers who have been forced to close stores.

Angela Spindler, chief executive, said “As highlighted in our full year results, this was a challenging period for fashion retail.

“Against this backdrop and a double-digit comparative in product revenue, I am satisfied with our Q1 performance. At this early stage in the financial year our full year expectations are unchanged.

“In line with our online strategy, and given continued weak high street footfall, we have today commenced a consultation process with colleagues over the future of our small store estate.

“This action has not been taken lightly and we will do all we can to support the colleagues affected during this process.

“We continue at pace our journey to become a global online retailer, uniquely delivering fashion that fits. This will underpin our future growth, both in the UK and Internationally.”

Michelle Byrne – Usdaw area organiser – said: “This announcement is a real shock for staff and we are providing our members with the support they need at this very difficult time.

“Usdaw will enter into consultation talks with the company towards the end of the month when we will interrogate the business case for the proposed store closures. Our priority is to save jobs.”

Russ Mould, investment director at AJ Bell,  said: “News that fashion retailer N Brown is thinking about shutting all of its retail stores sounds dramatic, but its physical shops only account for 2% of group revenue.

“It’s a sign of changing times that retailers are brave enough to reshape their business to match how consumers buy goods today and not feel compelled to keep ailing stores alive simply because that channel is traditionally how items were sold in the past. It seems inevitable that many other retailers will follow suit in time.

“To put the situation in context, N Brown generates 75% of its sales online and three quarters of these transactions are made via mobile devices. The company makes the remainder of its money in areas like customer credit.

“If few people are visiting stores, why keep them open? On one hand, they help to keep the brand in front of the public and act as a showcase for a retailer’s products. On the other hand, they incur costs which may not be justified if the returns are inferior.

“N Brown only has 20 stores and while shutting them may sadly cause job losses, it could be a positive decision for the business over the long term.”