Frasers Group is undergoing digital team restructuring, risking redundancies.
- A redundancy consultation for 45 digital roles has begun, linked to office relocation.
- Plans are in motion to move the digital team from London to Shirebrook.
- Previous closures in Trafford had already put 100 roles at risk earlier this year.
- Financial reports show a mixed performance with a rise in profit but a dip in revenue.
Frasers Group has initiated a redundancy consultation affecting 45 roles within its digital department as part of its strategic decision to relocate the team from London to its head office in Shirebrook. This move comes amidst broader restructuring efforts aimed at consolidating operations and aligning with the company’s strategic objectives. However, the actual number of redundancies is anticipated to fall below the initially projected figure of 45.
This recent decision follows earlier disclosures where Frasers Group had identified 100 positions at risk due to the closure plans of their Trafford, Manchester office. These changes highlight the ongoing shift within the company’s operational strategy, which seems focused on centralising resources and streamlining its workplace structure to enhance efficiency and drive its long-term goals.
Financially, the group has reported a notable 13.1% increase in adjusted profit before tax, amounting to £544.8 million for the year leading to 28th April 2024. This rise is attributed to their continued execution of what they term as an “elevation strategy,” reflecting efforts to enhance brand positioning and market influence. However, this success in profitability contrasts with a slight downturn in overall group revenue, which saw a 0.9% year-on-year decrease to reach £5.53 billion. Furthermore, there was a 1.3% decline observed in retail revenue, although this was offset by a significant 101.4% rise in property revenue, juxtaposed with an 11.2% decrease in financial services revenue.
The juxtaposition of rising profits with declining retail revenues indicates an evolving business model where investments and returns from property assets are gaining heightened importance within the group’s portfolio. This dynamic reflects broader market trends and Frasers Group’s adaptive strategies in response to shifting consumer behaviours and economic conditions.
Frasers Group’s restructuring and financial outcomes underscore an adaptive strategy aimed at aligning with market trends and operational efficiencies.
