Lingerie retailer Ann Summers announces redundancies due to economic challenges.
- The retailer operates around 90 stores with a workforce exceeding 1,000.
- CEO Maria Hollins cites rising costs and high taxation as significant pressures.
- Despite a recent 4.5% turnover increase, cost-cutting measures are necessary.
- Growth plans continue alongside cost-reducing strategies to balance market challenges.
Ann Summers has confirmed the redundancy of a small number of staff members, attributing this decision to the tough trading conditions currently impacting the retail sector. With an established presence through approximately 90 stores across the UK and Ireland, Ann Summers employs over 1,000 individuals. The company, known for its lingerie and sex toy offerings, has been navigating through a marketplace characterised by rising costs and elevated taxation.
CEO Maria Hollins acknowledged the sector-wide pressures during a public statement made on 20 November. She elaborated, “All retailers are under significant pressure with continuing high taxation and rising costs. We have ambitious plans for growth and are always looking at options to bolster the brand in both the UK and internationally, but we also need to ensure our cost base reflects the challenges of today’s high street.” This move to reduce overheads includes the unfortunate necessity of job reductions, a decision not taken lightly by the management.
The precise number of redundancies or the specific roles affected remain undisclosed by the business. Notably, in the fiscal year up to 1 July 2023, Ann Summers reported a 4.5% increase in turnover, reaching £104.6 million. This positive financial performance was bolstered by a 12% rise in in-store sales, attributed to a resurgence of consumer activity on the high street post-pandemic. Furthermore, the company expanded its retail footprint with four new store openings in Chelmsford, Croydon, Buchanan, and Brent Cross.
Amid these broader strategies for sustained growth, the necessity for cost optimisation highlights the difficulties of balancing fiscal health with expansion objectives. Ann Summers continues to explore avenues for growth both domestically and internationally, seeking a harmonious alignment with the prevailing economic environment.
The decision to make redundancies underscores the balancing act Ann Summers faces between growth ambitions and economic realities.
