Ann Summers announces staff cuts due to challenging market pressures.
- CEO Maria Hollins asserts that the decision was not taken lightly.
- The company faces high taxation and rising operational costs.
- Despite workforce reductions, Ann Summers plans continued market expansion.
- Recent financial report shows a 4.5% increase in turnover.
In a recent announcement, lingerie retailer Ann Summers revealed that it has made some staff redundant. This decision comes in response to ongoing difficult trading conditions, according to CEO Maria Hollins. The company, which operates approximately 90 stores across the UK and Ireland and employs over 1,000 staff members, cited increasing tax pressures and rising costs as significant factors influencing this move.
Maria Hollins, CEO of Ann Summers, stated, “All retailers are under significant pressure with continuing high taxation and rising costs.” She emphasized that their goal is to bolster the brand both domestically and internationally while ensuring the business remains cost-effective given current high street challenges.
The company has not disclosed the exact number of positions affected or the specific roles involved in this reduction. However, this workforce adjustment was described by Hollins as a necessary measure to align the company’s costs with market realities, although not a decision made lightly.
Despite these setbacks, Ann Summers remains committed to growth. Earlier this year, they reported a 4.5% increase in turnover, reaching £104.6 million for the 53 weeks leading up to July 1, 2023. This growth was partly driven by a 12% rise in in-store sales as customers returned to physical retail locations post-pandemic. Their expansion efforts included opening new stores in Chelmsford, Croydon, Buchanan, and Brent Cross.
Ann Summers is addressing financial challenges while maintaining an optimistic outlook for future growth.
