More than a dozen Lush employees at risk of redundancy at flagship Scottish store

Around 16 employees could be affected after Lush posted losses of more than £1.1m over the past three years

More than a dozen Lush employees at risk of redundancy at flagship Scottish store in GlasgowAdobe Stock

More than a dozen Lush employees at the company’s largest Scottish store are at risk of redundancy, as the company aims to make £250,000 in savings.

The cosmetics retailer, which operates nine stores in Scotland, has placed 16 employees at risk at its Buchanan Street shop, after the business accumulated losses of more than £1.1m over the past three years.

One employee said they were given just 30 minutes’ notice to attend a meeting on Friday, where the redundancy process was outlined.

“Once I joined the call I had no idea what was about to happen”, they told STV News. “I could see the trainee managers, ops team and stock team, which was what made me so confused at first. Then a woman delivered the news.

“The call had very mixed emotions, people crying, people filled with anger. When questions were asked about why our teams were chosen there were no answers.”

Lush said the Glasgow store, which opened three years ago, was being targeted as it has “experienced a continued negative retail margin” in its shop floor, shampoo bar, and spa.

Projections suggest the store faces a further £700,000 shortfall by the end of the current financial year.

The staff member has said that the roles most affected include trainee managers and the stock and operations teams, while concerns have been raised about the limited alternative roles offered within the company.

“Many of us are in agreement the reason for the shops major losses is due to poor management decision-making”, they said.

“Constant maintenance to the building, cafe installs, etc.

“We all feel that the senior management should be the ones facing the redundancies not us.”

An email sent to staff by the company, titled ‘notice of potential redundancy risk’, said that the store in Glasgow is aiming to make annual savings of £250,000.

It read: “As you are now aware, the past few years have brought about some challenging times and some equally tough business decisions.

“The continual transition out of the pandemic for Lush has seen big changes in trading, footfall, and profitability. As a result of this we are continually reviewing our leases, store locations, team structures and profitability.

“Whilst Lush has demonstrated resilience, the Glasgow store, despite its anchor status, has faced financial challenges. Over the last three years, the store has experienced a continued negative retail margin in all three business areas: shop floor, shampoo bar and spa.

“Over the last three years this has accumulated to a combined loss of over £1.1m. Furthermore, for the current financial year the store is projected to have a loss of over £700,000.

“Due to significant market pressures, a comprehensive and strategic review of the global business has taken place and Lush Glasgow’s operational efficiency has been highlighted as a necessity to pull in line to protect the ongoing health of the business. As a result, it has been identified that Lush Glasgow is required to make annual savings of £250,000 in order to mitigate the continued downturn in profitability.”

Lush has been contacted for comment.

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