M&S unveils plans for 1230 job cuts as 27 stores face axe

Fears are growing that thousands more jobs in Scotland could be axed after Marks & Spencer became the latest high-street giant to announce mass redundancies.

Fears are growing that thousands more jobs in Scotland could be axed after Marks & Spencer became the latest high-street giant to announce mass redundancies.

Britain's biggest clothing retailer said it was cutting around 1230 jobs and closing 27 stores in the UK after reporting its worst quarterly sales for a decade.

Although none of the company's Scottish shops are directly affected, unions warned that there were likely to be more cuts ahead unless trade improved significantly.

The concerns follow claims by staff at M&S's Aberdeen branch earlier this week that they had already been told their jobs would go.

M&S sought to reassure staff north of the border, however, stressing that the closures were based on a review of all of its stores which found that none in Scotland was trading below expected levels.

M&S chairman Sir Stuart Rose announced the cuts yesterday after the firm revealed that UK like-for-like sales fell 7.1% in the 13 weeks to December 27, the third quarter of its financial year, including the crucial Christmas period.

The proposals to close 25 "small, underperforming" Simply Food stores and two small main chain stores could cause around 780 job losses. A further 450 jobs could be axed through cost-cutting at the firm's head office, reducing its workforce by about 15%.

Sir Stuart said: "We are aware that the proposed changes will be difficult for those members of staff impacted, but given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business."

A spokeswoman said none of M&S's 45 Scottish stores was included in the proposals, and neither was its workforce of around 5000 employees in Scotland, but unions north of the border were far from reassured.

GMB Scotland regional secretary Harry Donaldson said: "The indications are that this is the first-ditch attempt to cut costs and bring the company back into profit to satisfy the city and shareholders. Our biggest concern is if trading continues at current levels the cuts will be bigger.

"We have serious concerns about the effect of consumer spending and Scotland is obviously not immune from the impact of that.

"There are thousands of staff in Scotland. M&S is part of the fabric of the high street, but so was Woolworths."

The news came as business analysts confirmed the names of five Scottish towns predicted to be the worst hit by the continuing retail crisis. They were Clydebank, Kirkintilloch, Rutherglen, Cumbernauld and Kilmarnock, which retail analysts at Experian expect to suffer the most from the loss of chains like Woolworths and Adams.

In its report, Experian said: "These towns contain a number of retailers that have gone into administration in the past year and had a high proportion of vacant space anyway. The situation can only get worse for these towns going forward as more retailers suffer the fallout from poor Christmas trading and seek to reduce their store portfolios as a result or go into administration."

However, in Kilmarnock, which has already been hit by the loss of branches of both Woolworths and Adams, councillors were optimistic.

Douglas Reid, of East Ayrshire Council, said: "We are no different to any other town in terms of Woolworths. Kilmarnock is in a pretty strong position retail-wise and we are doing all we can to help. In a survey a few years ago it was one of the strongest home not clone' towns.

"There are a lot of family shops here which bring a lot of people to the town. A new Tesco is opening in September on the south side of the town centre which we're hoping will also have a significant effect on the retail centre across the road, which is already doing well.

"Indications are that the M&S in the key shopping street is performing well too."

What do shoppers think?

CLARE JESSETT, 23, WOODLANDS
"If this one closes, I hope it's not going to be replaced by another Poundland! We've got too many of those. Please don't let it be the Byres Road branch that goes, I rely on that one."

SHEILA COUTTS, 40, WEST END
"I'd never come unless I'm sent by work. The sandwiches are better quality and the price isn't that bad."

FRANCESCA MORRISON, 35, GLASGOW
"It's a real shame about the news. I come here once a week for bread and milk, things like that. It's definitely better than any of the cheaper supermarkets. I don't buy many clothes here as they're too expensive even in the sales. There was a skirt in there for £75 this Christmas - who can afford that? Whatever the stores are replaced by, I just hope it's not another Tesco. I'm so sick of everywhere being owned by the same company."

JEAN McCABE, 77, MARYHILL
"I don't shop anywhere else for food - I just adore it. I love their chicken, their chops and everything about their food. I don't know what I'd do without it - I would just have to travel to the nearest one, wherever that was. I also buy quite a lot of their clothes and like everything I've bought from there."

AISLING FRIEL, 26, CATHCART
"I'd always do my big shop somewhere else because of the price. Marks & Spencer is just somewhere you pop in for convenience on the way home. Although this branch is always busy at lunchtime, I wouldn't miss it if it closed. There's just too much choice in the city centre."

RICHARD GASS, 45, STEWARTON
"I don't shop there enough for the change to affect me. It's just sad because this area's going to become a ghost town. Around Central Station it already looks so run down with all the discount stores.

I'm worried that if any more shut around here, no-one's going to want to invest in the site. It's only going to get worse."

MARGARET SHACKLETON, 77, BURNSIDE
"I don't shop here very often but it is certainly better quality - Sainsbury's across the road is not in the same league. I pop in for a treat or, for example, I'm going out tonight so I popped in to buy my husband's dinner. But I think the closures are because there are far too many of them, especially the stores that sell clothing."