Footwear giant Clarks is to cut more than 150 office-based jobs, according to a report, after blaming “discount hungry customers” as it swung to a loss last year.
According to retail sector publication Drapers, Clarks is cutting head-office jobs, including at its headquarters in Somerset and its US HQ in Massachusetts.
It comes after the business made a £40 million loss in 2023, having made a profit a year earlier. Impairment charges weighed heavily on the results.
The business blamed “sticky inflation” and high interest rates for low demand for its shoes, and said that “discount hungry customers” ate into its margins.
“Customers continue to be cautious in their shopping with greater demand for lower price points,” it said.
The business also noted that many retailers that sold Clarks shoes were “overstocked” and so did not need to order more shoes.
Clarks said: “The business and trading environment at the close of 2023 is one of ongoing uncertainty and relative pessimism, especially in the Western hemisphere. Continuing major conflicts and inflationairy pressures are the key drivers in subdued customer sentiment, resulting in stagnant economic growth expectations in major markets. This is evident in the financial performance of Clarks in 2023, operating in a market with weak demand that has been ‘over supplied’ in the global recovery post pandemic.”
Sales for the year were just short of £1 billion.
The latest accounts covered the first year in which Chinese businessman Li Ning’s Viva Goods owned Clarks. The Clark family continues to hold a minority stake.
The latest cuts follow 103 redundancies in 2023.