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Selfridges Cuts 70 Jobs After Decline In International Sales

By Nithya Bose in Business News, posted May 10, 2024

Department store chain Selfridges will cut about 70 jobs, according to an announcement by CEO Andrew Keith.

The Times reports the cuts are due to the loss of tax-free shopping for international tourists and a downturn in luxury spending.

This move follows a previous round of layoffs nine months earlier, though the upcoming job losses will reportedly not affect store workers.

The discontinuation of VAT-free shopping for foreign visitors has notably diminished sales, impacting Selfridges, which traditionally benefits from high spending by wealthy tourists in the UK.

Selfridges said: “The continued absence of a tax-free shopping scheme in the UK has significantly impacted international sales.

“Our proposals mean making around a two percent reduction in our overall headcount.

“The proposed reduction equates to approximately 70 roles across specific head office departments.

“However, we hope to offer a number of those impacted redeployment opportunities.”

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Recently, Superdry co-founder and CEO Julian Dunkerton said the termination of tax-free shopping prompts shoppers to favour Europe over the UK for their purchases.

Dunkerton criticised the government's decision not to reinstate the scheme that permitted international visitors to recover 20 percent VAT, labeling it a "self-inflicted wound."

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