The problems at Lunn Poly and Going Places show just what a difficult time the retail market is having. Business is slow and cuts are needed.
There’s nothing particularly strange about that – businesses often have to tighten their belts.
But the multiples have to make sure their actions do not have an adverse affect on their shops and hit morale among frontline staff.
Going Places is right to make cuts at head-office level and improve the basic wage of travel agents by revamping its unpopular Pay and Rewards scheme. That sounds tough on head-office staff, but you have to look after the people who are dealing with the public. If you haven’t got the sellers on your side, you haven’t got a business.
Similarly, Lunn Poly has to be careful that its cost cutting doesn’t lead to an exodus of disgruntled staff.
A recruitment freeze may be sensible, but talk of scrapping educationals and Christmas parties sends out the wrong signals. These things may not sound much to those making the cuts, but they can have a hugely depressing effect on counter staff.
Already we’ve had Lunn Poly staff call us to complain that moral is low and that they are not being treated fairly.
A sensible business has to cut its cloth accordingly, but don’t lose sight of what makes you successful in the first place.
Jeremy Skidmore – editor