River Island has launched a redundancy programme at its London head office, with job cuts expected across several departments, including buying, merchandising, and HR.
The move comes after the fashion retailer drafted in AlixPartners to help with cost-saving measures and improving profitability as the high street faces the looming prospect of tax hikes in April.
The retailer did not disclose the number of roles at risk when contacted by Drapers, or provide further details on the specific impact across departments.
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River Island, owned by the Lewis family, has experienced significant challenges in recent months, with rising costs and competitive pressures.
In October, the retailer posted a pre-tax loss of £32.2m for the year ending December 30, driven by a 15% decline in sales and ongoing investments in the rollout of its new concept stores.
This marked a significant shift from the previous year’s £7.5m profit, driven by a 15% sales decline amid a “challenging trading environment”. Rising costs, increased online competition, and ongoing investments in new concept stores were identified as key factors contributing to the loss.
The company employed 1,126 office staff as of December 2023, along with 1,252 retail employees.
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