Clarks, the shoe retailer, warned it will axe more than 150 of its office-based workers after it swung to a loss last year.
Blaming “discount-hungry customers” for the downturn in performance, the group said it will now cut jobs at its headquarters in Somerset and Stateside in Massachusetts.
Losses reached £40 million for the 2023 financial year, the retailer revealed, having swung from a profit in 2022 after suffering from weighty impairment charges.
Sticky inflation, high interest rates, weak margins and weak demand for shoes were also cited as reasons for the poor year.
“Customers continue to be cautious in their shopping with greater demand for lower price points,” Clarks said.
Third-party businesses which stock Clarks products were said to have remained overstocked over the twelve months and therefore didn’t order as many shoes.
“Business and trading environment at the close of 2023 is one of ongoing uncertainty and relative pessimism, especially in the Western hemisphere,” the company added.
“Continuing major conflicts and inflationary pressures are the key drivers in subdued customer sentiment, resulting in stagnant economic growth expectations in major markets.”
Sales reached just under £1 billion in the first year that Viva Goods, the Chinese business, has owned Clarks.