900 jobs: the cost of Shop Direct’s internet success

SHOP Direct, the home shopping group, has today announced that it is to close its Crosby call centre, and axe at least 900 jobs.

All 1,000 call centre workers will lose their jobs and another 150 will go across other areas of the businesses, including at its Speke headquarters.

Chief executive Mark Newton Jones said the company hopes to relocate 250 staff – leaving 900 out of work.

The group said the Crosby closure is part of its “transformation” to an online-led business.

In January, it announced sales were up 9% for the six-week period over Christmas, compared to online sales, which showed 44% growth. The online business now accounts for 56% of total sales, up from 18% three years ago.

Mr Newton Jones said: “We recognise that this will be a difficult time for those members of our team impacted by today’s announcement.

“Our business is changing because the way our customers choose to shop with us is changing. We anticipate that 70% of our sales will be online by 2010/11 and, therefore, the future of our business is online-led.

“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.”

David Johnson, national officer for shop worker’s union Usdaw, said: “We will be starting a consultation process with the company tomorrow and will be examining in detail their business case to close the Crosby call centre.

“The company maintains that the decision is not due to the current economic climate but is necessary because of the steady decline of the traditional catalogue home shopping business as customers switch to the internet.”

In addition to Crosby, the Shop Direct Group has call centres based in Aintree, Preston, Bolton, Burnley, Newtown, Sunderland and Worcester.

Formerly called Littlewoods Shop Direct, it employs 10,500 staff in total. It owns home shopping brands including Littlewoods, Kays, Empire Stores, Additions and Great Universal.