Harvey Nichols Bristol: Luxury department store to cut jobs after 'difficult decisions' amid cost pressures

Luxury department store Harvey Nichols has launched a major shake-up of its operations with plans to cut dozens of jobs.

The retail chain brand, which has a flagship store in Bristol’s Cabot Circus, said less than five per cent of workers are at risk of redundancy as result but it had to make "difficult decisions".

It understood that roles relate to head office jobs and will impact around 60 London-based employees, subject to a consultation process.

The group, owned by Hong-Kong based Sir Dickson Poon, said it will seek to offer impacted workers roles in other parts of the business.

It comes after rivals like Selfridges and John Lewis have also cut jobs over the past year amid efforts to reduce operating costs.

Bosses at the company said the overhaul comes after the retailer came under pressure from recent rampant inflation, cost increases and the end to tax-free shopping for tourists in the UK.

The retailer, which was founded in 1831, has stores in Bristol, Leeds, London, Edinburgh, Manchester, Birmingham and Dublin. It also has a dedicated beauty store in Liverpool as well as international sites. Its Bristol store opened in September 2008 amid huge fanfare.

Pearson Poon, Harvey Nichols’ vice chairman, said: “We are taking action to simplify and strengthen our business by optimising our cost structure to operate more efficiently across our support team.

“Coming out of Covid has been very difficult for the wider retail industry in the UK, which faced increased inflation, cost pressures, and the loss of tax-free shopping.

“We are making difficult decisions today to ensure we are well positioned for success in a continuously evolving retail environment.”

On Tuesday, the luxury firm also confirmed it saw higher sales over the previous financial year and cut its losses.

Accounts for the year to April 1 2023, which are due to be published soon, are set to show revenues grew by 13% to £216.6m as it continues its recovery following the impact of the pandemic and cost-of-living pressures.

It also recorded a pre-tax loss of £21.3m for the year, down from £30.4m a year earlier.

The group’s boss Manju Malhotra stepped down from the company last year, following reports of tensions over its growth strategy.