Carpet retailer Carpetright has announced restructuring plans across a number of departments to better support regional stores and digital plans over the next 12 months and beyond.
A staff reduction of just over 25 percent will affect the company’s central support centre and field management teams leading to approximately 70 job losses. This reduction in central support roles reflects the depletion in the retail portfolio, and revenues, that the business has experienced over the past 8 years.
Following a detailed review of the business, cost reduction efforts have been outlined and will be implemented across IT, warehousing and distribution, central support and field management.
By taking these actions, the company will be able to remove about £22m from the cost base, enabling them to meet evolving customer needs and protect the long-term future of the business.
Work is also underway to create efficiencies across the company’s supply chain model whilst a review of the technology platform is expected to deliver a more cost effective and simpler IT solution going forward. Carpetright will continue investment into its retail and customer experience over the next 12 months.
Kevin Barrett, CEO of Nestware Holdings, is committed to continued investment following the restructure: “While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team. Our top priority remains supporting those affected through this process.
“As with many businesses, we face ongoing challenges in today’s tough economic climate. We’ve carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand.
“Unfortunately, this means reducing our central payroll costs. Whilst every effort has been made to seek the best solution to our current situation, we are aware that valued members of our team will be impacted.”
Staff have been made aware of the restructure. Store numbers and services will not be affected during this process, all Carpetright stores will be in full operation during this period and customer orders proceeding as normal.
