Selfridges boss blames job cuts on loss of tax-free shopping

Selfridges is reportedly set to cut 70 jobs with CEO Andrew Keith blaming the loss of tax-free shopping, according to reports from The Times.

Keith claimed that the new set of redundancies had been caused by the government ditching tax-free shopping for international tourists.

Selfridges Retail saw a 29% increase in sales to £843.7m for the year to 28 January 2023, and pre-tax losses before tax narrowed to £37.9m from £121.5m the prior year.

The redundancies come just nine months after its previous set of redundancies but the company stated that store workers will not be affected.

A spokesperson for the company stated: “We are in the process of making proposed changes to some specific Head Office functions as we respond to market conditions and the evolving needs of our customers.

“The continued absence of a tax-free shopping scheme in the UK has significantly impacted international sales. Our proposals mean making around a 2% reduction in our overall headcount. Our Store team members are not part of this review. We are working through the details with our teams through the consultation process.”

They added: “We’re responding decisively to changes we’re seeing from an international and digital perspective. The proposed reduction equates to approximately 70 roles across specific Head Office departments however we hope to offer a number of those impacted redeployment opportunities.”

Superdry founder Julian Dunkerton claimed earlier this month that people were opting to travel to Europe instead of the UK to go shopping following the end of tax-free shopping.

He called the decision no to reintroduce the scheme that allowed international visitors to reclaim 20% VAT was a “self-inflicted wound”.