Retailers not only in UK but in many other countries impacted by COVID-19 have remained in survival mode, preserving cash and hanging on for more sustainable levels of demand to return. But as the uncertainty continues, the cost-cutting measures continue. 

 

Marks and Spencer said total sales in its hard-hit clothing and home arm plunged 29.9% in the eight weeks since shops reopened, with store sales tumbling 47.9% and online surging 39.2%.

 

At the height of lockdown, M&S CEO Steve Rowe said customers might "never shop the same way again" after the coronavirus crisis.

 

"It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change," added the company. 

 

In response to the changing market conditions, and pandemic's impact on business, the UK retail chain

is shedding its 78,000 jobs in support functions, in regional management and in its UK stores. 

 

The reason is not only the impact on business but also the realisation that similar level of work can be accomplished in less number of workforce. 

 

The retailer said it has learned that employees can work more flexibly, and that some can transition between its food and clothing and home departments. New technology in stores has "enabled us to reduce layers of management and overheads in the support office," it added. The company expects a large portion of the reductions to be through voluntary departures and early retirement.