Coffee and sandwich chain Pret a Manger has axed 2,800 roles from its shops as the coronavirus crisis continues to hammer UK plc.
In a statement released today, Pret chief executive Pano Christou said the coronavirus pandemic ‘has taken away almost a decade of growth at Pret’.
He added that the popular cafe franchise had ‘managed to protect many jobs’ and said he is ‘gutted that we’ve had to lose so many colleagues’.
It comes after a survey by the Confederation of British Industry found that UK retailers have cut jobs at the fastest rate since the financial crisis in 2009.
Mr Christou said: ‘I’m gutted that we’ve had to lose so many colleagues. Although we’re now starting to see a steady but slow recovery, the pandemic has taken away almost a decade of growth at Pret.
‘We’ve managed to protect many jobs by making changes to the way we run our shops and the hours we ask team members to work.
Coffee and sandwich chain Pret a Manger has axed 2,800 roles from its shops as the coronavirus crisis continues to hammer UK plc
In a statement released today, Pret chief executive Pano Christou said the coronavirus pandemic ‘has taken away almost a decade of growth at Pret’
‘I’m hopeful we’ll be able to review all these changes now that trade is improving again, and I’m encouraged by the improvements we’re seeing every week. We’ll soon be announcing a number of big changes to help bring Pret to more people.
‘We’re grateful to the Government for the support they’ve given our sector, and hope that support will continue as long as possible to give Pret time to adjust.’
Though there have been ‘clear signs of recovery’ in footfall since the lockdown was eased, trade across Pret’s shops is still around 60 per cent down year-on-year.
A report by the CBI found the employment balance, which measures the number of retailers laying off and hiring staff over the past year, had dropped to minus 45 per cent in August from minus 20 per cent in May.
The figures, which are the lowest level the country has seen since February 2009, also revealed an unexpected slump in retail sales in August with its balance falling to minus 6 per cent from 4 per cent in July.
It was revealed that the retail bloodbath has claimed or put under threat at least 41,391 UK jobs since the lockdown was introduced in late March.
It comes after a survey by the Confederation of British Industry found that UK retailers have cut jobs at the fastest rate since the financial crisis in 2009
It follows mounting warnings of mass unemployment when the Government’s worker furlough scheme comes to an end in October.
The retail sector is among those which have leaned heavily on the scheme since lockdown forced vast swathes of the high street to shut.
Non-essential shops have been able to re-open since June, but many retailers have had to close shops and cut staff as shoppers continue to shun the high street.
Marks & Spencer added to the pain in the retail sector, announcing 7,000 job losses last week.
The London-based retail giant revealed the bulk of the cuts would be made across its stores, hitting around 12 per cent of its 60,000 shop-based staff, as well as a smaller number of support centre and regional management workers.
M&S, which employs 85,000 people worldwide, said it expected a ‘significant’ number of roles would be cut through voluntary departures and early retirement.
Alpesh Paleja, lead economist at the CBI, said: ‘The furlough scheme has proved effective at insulating workers and businesses in some of the worst-hit sectors during the pandemic, but these findings reinforce fears that many job losses have been delayed rather than avoided.’
He added: ‘Trading conditions for the retail sector remain tough, even against the backdrop of business slowly returning.
‘Firms will be wary of deteriorating household incomes and the risk of further local lockdowns potentially hitting them in the pocket for a second time.’
The survey also found that retailers polled for the report expect job losses to fall further, with a balance of minus 52 per cent for the next quarter.
Earlier this year administrators of Oasis and Warehouse blamed coronavirus for the woes of High Street chains
This month it was revealed Debenhams was set to axe 2,500 jobs across its stores and warehouses
They also showed that retailers expect sales to fall further in September, with a balance of minus 17 per cent.
But official figures offered some good news for the embattled retail sector last week, revealing total retail sales volumes in July rose 3.6 per cent compared with June and are now 3 per cent above pre-pandemic levels.
More than 187,000 people across a range of industries now face redundancy, or have already been laid off, in recent months as the pandemic puts a huge dent in the nation’s economy.
This month it was revealed that Debenhams was set to axe 2,500 jobs across its stores and warehouses in an attempt to cut costs after sales plummeted during the coronavirus lockdown.
It was also revealed that around 14,000 jobs could also be on the brink at Debenhams, with plans to liquidate the business being drawn up in case other options for saving the company – such as selling it – fall through.
The department store is scrapping the roles of sales manager, visual merchandise manager and selling support manager as part of a management restructuring process.
The move, which was first reported by RetailWeek, comes four months after Debenhams collapsed into administration.
Meanwhile it was reported that 1,300 jobs at the British retail giant John Lewis had been affected this month after eight retail sites announced in July they were at risk of closure.
The retailer said the affected stores were ‘already financially challenged prior to the pandemic and a number of contributing factors, including the shift towards online shopping which Covid-19 has accelerated, meant these shops would not be commercially viable in the future’.
In a statement, the business said: ‘This is a very sad occasion and one we never thought was imaginable when we first opened these shops.
‘Our expectation was that we would trade in these locations for many years to come, but they were financially challenged before the pandemic and we have not been able to find a way that would allow us to turn that around.
‘We are grateful to those who have expressed their support since announcing the proposed closure last month, and for the incredible professionalism our partners have shown – they remain our absolute priority and will be fully supported over the coming weeks.’
Earlier this year more than 1,800 jobs were lost at Oasis and Warehouse after administrators said they were unable to rescue the company behind the brands.
In a statement the Joint administrator at Deloitte, Rob Harding, blamed coronavirus for the stores’ demise and said: ‘Covid-19 has presented extraordinary challenges which have devastated the retail industry.
‘It is with great sadness that we have to announce a sale of the business has not been possible and that we are announcing so many redundancies today.’
It comes as the Office for National Statistics said 730,000 people have been taken off payrolls since the beginning of the crisis in March, and predicted some 6.5 million jobs in total will go in the UK because of the disaster.
Government figures also reveal 6.1 cent of the UK working population have changed occupations in the three months after the pandemic hit.
Statisticians said that most people who changed jobs in the quarter after the pandemic hit also changed their industry, as large parts of the economy shut down temporarily.
The Government’s furlough scheme for workers comes to an end in October and while it has launched the back to work bonus, offering firms £1,000 for every furloughed staff member a business retains, there are fears there will still be thousands more retail jobs axed.
The slow return of the high street: Official footfall figures show town centres are rebounding more slowly than shopping malls and more than one in 10 workers is STILL on furlough leave
By David Wilcock, Whitehall Correspondent for MailOnline
Britain’s high streets are rebounding at a slower rate than shopping centres, according to new figures which show how the reluctance of staff to return to workplaces is harming businesses.
Footfall in town and city centre streets has stagnated in recent weeks, figures from the Office for National Statistics (ONS) revealed this morning.
At the same time out-of town retail parks and urban shopping centres have continued to slowly move back towards their original footfall.
The ONS release also showed that 13 per cent of workers is still on paid furlough under the Job Retention Scheme (JRS), with almost one in four (39 per cent) of companies topping up their wages.
It came as Boris Johnson was told to do more to get office workers back at their desks.
Carolyn Fairbairn warned today that commercial centres risk being permanent ‘ghost towns’.
Writing in the Daily Mail, the director-general of the CBI said getting staff back into offices and workplaces is as important as the return of pupils to school.
‘The UK’s offices are vital drivers of our economy,’ says Dame Carolyn, who speaks for almost 200,000 firms. ‘They support thousands of local firms, from dry cleaners to sandwich bars. They help train and develop young people. And they foster better work and productivity for many kinds of business.
‘The costs of office closure are becoming clearer by the day. Some of our busiest city centres resemble ghost towns, missing the usual bustle of passing trade. This comes at a high price for local businesses, jobs and communities.’
Dame Carolyn’s intervention will pressure the Prime Minister to match his rhetoric on the need to return to school with similar words – and action – about workplaces.
The ONS measured footfall compared with the same day of the week in 2019.
‘Seven-day average continued to increase in the latest week (17 to 23 August 2020), to around 70 per cent of the level on the same day a year ago, driven by increased footfall at retail parks and shopping centres,’ it noted.
‘This continues the gradual increase in footfall seen since the reopening of non-essential shops and businesses in England on 15 June.’
But more worrying for smaller retailers found on high streets, it added: ‘Footfall on high streets has remained stable over the last few weeks.’
In the week beginning August 17, footfall in retail parks increasing to 90 per cent of the same day in 2019, and shopping centres to just under 70 per cent.
This graphic from Centre for Cities shows the average footfall in city centres for the last full week of August, compared to pre-lockdown levels. The darker the green, the closer the city centre is to pre-lockdown levels
British workers are the most reluctant to return to the office because of fears of a second wave of coronavirus, a new study has found
DAME CAROLYN FAIRBAIRN: Ghost town Britain HAS to get back to work and Boris Johnson must lead the way
CBI director-general Dame Carolyn Fairbairn
Decisions taken over the next few weeks will shape our economy for a decade.
Getting schools back is an essential component. But as important will be building the right environment to get people back into offices and workplaces.
The UK’s offices are vital drivers of our economy. They support thousands of local firms, from drycleaners to sandwich bars. They help train and develop young people. And they foster better work and productivity for many kinds of business.
The costs of office closure are becoming clearer by the day. Some of our busiest city centres resemble ghost towns, missing the usual bustle of passing trade. This comes at a high price for local businesses, jobs and communities.
Remote working has been a resounding success for many firms and employees, and none of these benefits should be lost. Many people have never worked harder, keeping businesses afloat from their desks and kitchen tables.
Flexible working is here to stay and needs to remain an option for many. But there are serious downsides too.
For young people, learning face-to-face in the workplace is an unbeatable way to build skills and confidence. We must not deprive the next generation of this opportunity.
Not everyone has the space to work effectively at home – an ironing board in the bedroom does not make a great workspace. And the mental health challenges triggered by isolation are all too real for many.
A lone man looks across the River Thames from the South Bank in Central London on Monday
There is also the question of fairness. Many employees, from barbers to brewers, have no option to work from home.
We don’t want to see a new divide in our society – between those who can and can’t work from the safety and comfort of their homes.
For all these reasons we need more people to feel it is safe and possible to go back into their places of work.
This is why we are today calling on the Prime Minister and his Government to do more to build confidence around getting people back into offices and workplaces.
A lone woman crosses Waterloo Bridge with the London Eye in the background on Monday
Getting schools open safely is a vital first step to enable parents to go back to work, but they must stay open wherever possible.
This means effective test and trace, and a focus on resilience. We need government, nationally and locally, to do much more to build confidence in public transport.
They need to shout louder about safety measures in place, enforce the wearing of face masks on tubes, buses and trains, and support the introduction of flexible season tickets so people can return gradually without financial penalty.
And we urgently need mass widespread testing – including in the workplace – to help people feel confident and safe.
Prime Minister Boris Johnson tours Castle Rock school in Coalville, Leicestershire, yesterday
We welcome the Health Secretary’s recent commitment to a mass testing strategy for 2021.
More flexible working is indisputably a good thing for our economy and quality of life, but we must have a balance.
It’s time for the UK to bring its workplaces back to life, or we will look back with regret at the jobs lost, training missed, and communities harmed.We ask the Government to work with business to build confidence in returning to offices, starting now.