Discount store group gears up to axe nearly 4,000 jobs

Thousands of jobs at retailer Wilko are at risk after the firm confirmed it has entered redundancy consultation with nearly 4,000 staff.

The announcement comes weeks after the firm cited a rise in costs as a result of the pound’s Brexit-induced collapse.

Among the chain’s North East stores are branches in South Shields and Jarrow.

The company said that, following a review of its operating functions, changes are required to “ensure it is best placed to continue to thrive within an ever-changing retail landscape”.

Wilko said it is consulting with 3,900 of its store supervisory team about a new management structure, alongside trade union the GMB.

Itaddedthat1,000newsenior supervisor roles will be created as part of the shake-up, as well as a “significant amount” of customer service roles.

The move comes after Wilko posted an 80%plunge in pre-tax profits to £5.1million in the year to January 28, with the firm pointing to “uncertain economic and geopolitical events”, the collapse in sterling and the introduction of the national living wage.

Inflation,whichhassoared since the Brexit vote sent the British currency tumbling, hit its highest level for nearly four years in May at 2.9% before easing back to 2.6%.

The net result has been an increase in import costs for retailers.

Anthony Houghton, Wilko’s retail director, said: “Despite the challenging retail landscape Wilko has seen both positive customer numbers and like-for-like sales growth this year.

“This is not translating into positive results despite all the hard work to reduce costs, grow own-brand and digital sales.”