Amidst challenging economic conditions, Ann Summers announced a reduction in staff, describing the decision as difficult but necessary.
- The retailer, with 90 outlets in the UK and Ireland, has resorted to this measure due to increasing operational costs.
- CEO Maria Hollins highlighted pressure from high taxes and costs as significant factors impacting the business.
- Despite the setbacks, Ann Summers experienced a notable increase in turnover and continues to expand with new store openings.
- The company remains committed to its growth ambitions both domestically and internationally.
Amid challenging market conditions, Ann Summers has decided to make a ‘small number’ of staff redundant. This decision comes as the company faces continued economic strain, particularly from high taxation and rising operational costs. Operating around 90 stores across the UK and Ireland, Ann Summers employs over 1000 individuals, making these redundancies a significant move.
CEO Maria Hollins articulated the gravity of the situation, stating, ‘This was not a decision we took lightly.’ She emphasised the broader pressures felt by all retailers and pointed to the strategic measures necessary to maintain the company’s position and ambition. While these redundancies are a part of cost-cutting efforts, she reassured that the brand’s core growth strategies remain unchanged.
Interestingly, March reports indicated a healthy increase in turnover for Ann Summers by 4.5% to £104.6 million over the 53 weeks to 1 July 2023. In-store sales alone showed a promising growth of 12% year on year, attributed to the resurgence of consumers visiting physical stores post-pandemic. This positive trading performance has been further sustained by the introduction of four new store locations, including Chelmsford, Croydon, Buchanan, and Brent Cross, expanding their retail footprint.
The company has chosen not to disclose the affected roles or the exact number of redundancies. Despite the immediate challenges, Ann Summers is pushing forward with ambitious plans to strengthen its brand both within the UK and in international markets. This strategic focus indicates a resilience amidst the current economic hurdles.
Ann Summers remains focused on adapting to economic pressures while pursuing its strategic growth plans.
