Major retailer cuts 1,200 jobs after sales plummet by almost £100million

Clarks cut over 1,200 jobs following a sales drop of almost £100million during its latest financial year.

The Somerset-based shoe retailer saw its revenue fall to £901.3million in 2024, down from £994.5million in 2023, as reported by City AM.

According to newly filed accounts at Companies House, Clarks' workforce shrank from 7,413 to 6,161 within 12 months, and the company recorded a pre-tax loss of £39.2m. This loss comes on the heels of a £39.8m pre-tax loss in the previous year.

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The last time Clarks reported a pre-tax profit was for the 48 weeks ending in 2022, with a total of £35.9million. In the recent accounts, Clarks noted that an impairment charge of £32.1million on right-of-use assets and store property plant and equipment had "significantly impacted" its results.

The company emphasised its aim to achieve sustainable sales growth while maintaining a cost-conscious approach to ensure healthy store profitability in 2025. City AM exclusively disclosed in April 2024 that Jon Ram, Clarks' chief executive, stepped down after two years at the helm.

Currently, the company is managed by an interim executive committee while the search for a new CEO continues. A statement approved by the board said: "2024 was a year of transition within the business, as internal and external factors created a variety of challenges.

"Externally we were faced with challenging global market conditions. With a high number of major elections taking place in countries like the United States, United Kingdom, India, the European Union and several emerging markets, businesses and consumers faced uncertainty regarding potential shifts n trade policies, regulatory frameworks and fiscal strategies.

"This had a significant impact on the economy, driving volatility in financial markets, influencing investment decisions and shaping economic policies.

"Coming on the back of continuing major conflicts and inflationary pressures, this led to reduced consumer demand in 2024.

"FY24 has therefore been a year of tradition for the Clarks Group with cost rationalisation and reduction to fix the foundations for our future.

"Significant changes have been made to the operations in the year to right size the overhead cost for the current business size, refocus the marketing approach, reposition the product assortment and set up the business for recovery and sustainable profitable growth in 2025."

In more retail news, New Look is closing another store next month - after already shutting 32 sites. The fashion retailer is closing its shop in Neath, Wales on August 6.

The news was shared on social media, with a photo that shows a closing down sign in the store. The sign reads: "Thanks for having us, Neath. This store will be closing on Wednesday, 6th August."