Primark has announced that 400 people will lose their jobs across the retailer's UK stores as it looks to cut costs following the impact of the coronavirus pandemic.
The fashion chain is overhauling its retail management team according to PA, with owners Associated British Foods revealing a hit to the company's recent trading due to the Omicron variant keeping shoppers away from stores.
The group said Primark's like-for-like sales in the UK were 10 per cent lower in the 16 weeks to January 8 when compared with pre-pandemic levels in 2020. So-called shopper footfall was hit by the rapid rise in Omicron cases in December.
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Despite that, AB Foods added that trading had improved in recent weeks as fears over the new variant eased. Like-for-like sales were also higher than the final quarter of the last financial year, with its stores shut due to Covid lockdown measures.
Total Primark sales were 36% ahead year-on-year, it added.
Furthermore, despite some delays at ports with shipments supply chain problems have begun to ease, AB Foods said.
The group is offsetting higher costs by slashing operating costs and overheads, and said it was simplifying its UK store management structure as part of this programme.
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