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* Job cuts add to thousands at other UK retailers
* M&S says has to react to changes COVID-19 has wrought
* Group sales down 19.2% in 19 weeks to Aug.8
* Shares down 2.8%, down 48% this year
(Adds detail, shares)
By James Davey
LONDON, Aug 18 (Reuters) - Marks & Spencer will cut
a further 7,000 jobs, it said on Tuesday, as the COVID-19 crisis
deals another blow to Britain's beleaguered retail sector.
"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," M&S said.
Clothing and home trading in its stores remained well below
last year though online and home delivery were strong, said the
retailer, which has a UK workforce of about 78,000.
The 136-year old M&S is seeking to reinvent itself after
decades of failed attempts. In May it said the crisis would
indelibly change its business and that it would accelerate its
turnaround plan.
M&S said the crisis had shown it could work more flexibly
and productively with more employees multi-tasking and switching
between the food and clothing and home divisions. Its use of
technology has also increased.
Last month M&S shed 950 store management jobs. Its latest
cuts will impact its headquarters, regional management and UK
stores over the next three months.
The cuts add to thousands already announced by other major
British retailers, including Boots, John Lewis
, Dixons Carphone and WH Smith.
M&S expects a significant proportion of its cuts to be
through voluntary departures and early retirement. Shopworkers'
trade union Usdaw called for urgent talks.
"These proposals are an important step in becoming a leaner,
faster business set up to serve changing customer needs," CEO
Steve Rowe said.
M&S shares were down 2.8% at 0818 GMT, extending 2020 losses
to 48%.
The firm said it was retaining a cautious approach to
planning for the balance of the year.
Group sales were down 19.2% year on year in the 19 weeks to
Aug. 8, which included part of Britain's lockdown period, with
clothing and home sales down 49.1% and food sales down 1.1%.
Clothing and home sales were down 29.9% in the eight weeks
since stores reopened. Store sales were down 47.9%, while online
sales were up 39.2%.
Food stores, which traded throughout the lockdown period,
saw sales increase 2.5% in the latest eight weeks.
M&S said it was on track to launch an online food service
next month through its partnership with Ocado.
(Reporting by James Davey; editing by Sarah Young and Jason
Neely)
