Esprit has announced it is to cut 40% of non-store jobs and reduce its product line by 30% as part of a restructuring attempt following tough competition from fast-fashion and online retailers.
On Monday (26 November) the retailer said in an investor presentation that it had “lost touch” with its audience, adding it felt it had “changed too much” and doesn’t know “what we stand for”. The fashion label wants to introduce more neutral coloured clothing such as black, white, grey and beige.
Restructuring at the fashion label, which was founded in 1968, is expected to cost between £149.4m and £169.3m in the 2018-2019 financial year, as it looks to close more loss making stores. The fashion brand currently employs 6,400 full-time members of staff as of 30 June, however it is unknown how many are non-store staff. Esprit’s stock decreased in value by almost half this year.
CEO Raymond Or said: “This exercise is going to be painful for the organisation, we have communicated with our colleagues and I think they have understood the company needs fundamental changes in order to survive in a competitive market place. It is not just about cost but also about making the company more efficient and responsive to the marketplace.”