THOMSON is to close some high-street shops including Lunn Poly agencies and off-load non-core businesses as part of far-reaching plans to halt its decline.
The operator also pledged to save £50m annually by 2002. Jobs will go as it integrates back-office functions and reduces its 40 call centres.
Announcing a 38% dip in profits to £77m, chief executive Charles Gurassa said e-commerce distribution will lead to a reduction in its high-street presence and admitted greater focus is needed on the operator’s air-inclusive product.
“We need to stop being distracted by our non-core businesses,” said Gurassa.
The group’s cottage brands and businesses dependent on ferry transport, including Something Special, Chez Nous and Headwater Holidays, could now be for sale.
Gurassa refused to reveal how many shops are likely to close, saying it was dependent on how quickly e-commerce develops.
Despite the expected agency closures, he said specialist shops including Lunn Poly Family and Getaway, which targets late bookers, are being trialled.
“High-street retail still has a 1980s model and tries to be all things to all people. By segmenting shops, we can increase profitability.”
As Travel Weekly went to press, Thomson shares closed at 93.25p, down 4.75p.
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