Shop Direct (Littlewoods) cuts 1,150 jobs - claims strong business
Shop Direct group (formerly Littlewoods Home Shopping) has dropped a stunner by closing their Crosby call centre thus axing 1,000 jobs and a further 150 redundancies at their Liverpool headquarters.
Despite this drastic cut, the group claims a "strong and growing" business, claiming the job cuts are due to a decrease in telephone support as the sales shift away from the traditional catalogue to online. Shop Direct announced a 44% growth in online sales over Christmas with the online division now accounting for 56% of the groups sales. Further they noted the group as a whole grew sales 9% over Christmas.
A bit of back-of-the-envelope-Bitterwallet-math indicates the 44% in online sales must be propping declining sales in catalogue business if the group only grew 9% as a whole. Although the massive loss of jobs is definitely not the news Shop Direct employees wanted to receive, does this indicate Shop Direct is on the road to a healthy recovery?
With high street merchants hitting the Deathwatch lists and stalwarts such as Comet and DSGi suffering does the huge online growth of Shop Direct indicate the future of the price conscious merchant is online only?
There is no word on how much the Littlewoods voucher codes contributed to the big uptick in Christmas sales...
[BBC] - Thanks for the heads-up Richard!