Penneys shop staff will not be included in planned Primark jobs cull

Primark is looking to cut around 400 jobs from its shops in the UK.

A plan to cut around 400 jobs across discount fashion retailer Primark will not include any staff in its stores in the Republic, where it trades under the Penneys name.

The planned cuts come as Primark saw a slowdown in customer numbers in December, due to the spread of the Omicron Covid variant. 

The retailer, famously, does not sell its products online.

Primark said its decision is part of an ongoing programme to “simplify retail operations” in the UK, where it employs 29,000 people across its shops.

The redundancies will be across management positions in some of its 191 UK shops.

A Primark spokesperson confirmed that there are no plans “in the immediate future” to stretch redundancies into the Republic and the Penneys store network.

However, it remains too early to know whether Primark’s shops in the North will be affected, as no regional breakdowns have been decided upon.

'Simplified structure'

“The changes we’re proposing will deliver a simplified and more consistent management structure across all of our stores, provide more opportunities for career progression and offer greater flexibility,” said Kari Rodgers, Primark’s retail director for the UK.

In a separate trading update, Primark said the rapid spread of the Omicron Covid variant hit customer numbers in December.

However, it said sales over the 16 weeks to January 8 were up 36%, on the previous quarter, despite the pandemic hitting footfall at its shops last month.

Primark has about 400 stores in Europe and the US – including 36 Penneys stores in the Republic - but does not trade online.

It said all its stores remained open throughout the period, except for short periods in Austria and the Netherlands. 

Last Christmas its store estate was largely closed due to Covid lockdowns.

Commitment to Ireland

Last year, Irish-founded Primark stated its commitment to its operations here, by saying Penneys will significantly increase its workforce in Ireland over three years and invest €250m in store openings and refurbishments.

Its Irish staff size will swell by 700 in the next three years, its flagship Cork shop on Patrick’s Street will be expanded, it will expand in Dundrum, and a new shop at The Square in Tallaght will open. 

In addition, Penneys is planning a new €75m distribution centre in Kildare, due to open during 2024.

Primark owner Associated British Foods also owns major sugar, grocery, ingredients and agricultural businesses. 

Revenue in these businesses were, on aggregate, 6% ahead of last year on a constant currency basis, the group said.

Additional reporting Reuters