From James Daunt
Dear all
Events are moving very fast and becoming ever more challenging. These are emotional and stressful times for us all, nowhere more so than for those of you serving customers on our shop floors and in our cafes. Once again, I thank you all sincerely for the exceptional professionalism you are demonstrating in such extraordinarily difficult circumstances.
Please excuse any impression of heartlessness in now addressing below our business situation. I do so acutely aware that for everyone the primary concern is for the safety of their family, friends and colleagues, and that all will be anxious for the security of their job.
Put simply, we work to keep our business as robust as possible to ensure that it survives such an unprecedented disruption to trade. Our customers are proving loyal to us and clearly appreciate that we remain open. Our sales have declined, but well within what we need to remain profitable. Some parts of the business, notably kid’s books and online, have improved in performance whilst others, like the café operation, have been hurt. Overall, if we can keep our stores open, it looks like we will manage well enough. This is a great testimony to the strength of the business and the loyalty to it of our customers.
In saying this, I appreciate that many will not wish to work in contact with members of the public. This is a personal decision we respect entirely.
As an ongoing measure, as I explained in my last note, we will cut all the expenditure that we can. Every dollar will be saved that does not impact the immediate running of the business. We start substantial reductions in cost at the Home Office. We seek not to damage our ability to run the company but set a clear priority to preserve positions in stores. The support of our Home Office colleagues as this is worked through is exemplary.
With the closure of stores, we are obliged to make the hardest of choices. The truth is that we cannot close our doors and continue to pay our employees in the manner of Apple, Nike, Patagonia and REI. They can do this because they have the resources necessary; we, and most retailers of our sort, do not.
We balance now our determination to save the business with an endeavor to be as fair as possible to all. In consequence, when a store is closed, employees will first make use of their Paid Time Off. When this is exhausted, we will pay employees with 1 or more years of service for up to 2 weeks based on their weekly standard hours. Temporarily, and with sincere regret, on closure we lay off all those employees impacted with less than 6 months employment on the day of closure.
This is a devastating situation in which to find ourselves and we understand the personal impacts of such action. When a closed store is permitted to reopen, we will demonstratingdo so, and we intend to rehire. We hope that as few as possible will be mandated to close and that any closures are temporary.
I am confident that we can carry the company through this catastrophe by taking such resolute actions. It is extraordinarily painful and, once again, I express my sincere appreciation for the dedication you are .