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Harvey Nichols, the historic department store chain, is undergoing a major operational shake-up that includes significant job cuts at its head office in London. It is estimated that around 60 employees based in London will be affected by the proposed changes, subject to a consultation process.
The luxury retailer, founded in 1831 and owned by Hong Kong-based Sir Dickson Poon, indicated that less than 5% of its workforce is at risk of redundancy due to the restructuring.
Harvey Nichols aims to offer impacted employees alternative roles within the business as it implements these changes amidst challenges from rampant inflation, rising costs, and the discontinuation of tax-free shopping for tourists in the UK.
Pearson Poon, Harvey Nichols’ vice chairman, emphasized the necessity of optimizing the company’s cost structure to operate more efficiently across its support team in response to the economic challenges following the COVID-19 pandemic.
Despite these challenges, Harvey Nichols reported higher sales over the previous financial year and a reduction in losses. Accounts for the year ending April 1, 2023, which are soon to be published, are expected to reveal revenue growth of 13% to £216.6 million, reflecting the company’s ongoing recovery efforts from the pandemic’s impact and cost-of-living pressures.
The company’s strategic realignment follows the departure of its former boss, Manju Malhotra, reportedly due to tensions over growth strategy. Harvey Nichols remains committed to adapting to the evolving retail landscape and ensuring long-term success amid challenging market conditions.
