Cook shops in fight for survival

Thomas Cook shops that have been earmarked for closure have two months left to fight for their survival, the company said today.’¨’¨

Four of the 22 stores that were due to close in the autumn have already won a reprieve after staff convinced Thomas Cook management they deserved a second chance.

Phil Aird-Marsh, chief executive of Cook’s independent and UK business, said the four shops came back with counter proposals during a 90-day consultation period.

"They challenged the decision to close them, which is great," he said. One of the shops, in Stirling, went on to win an internal award.

‘¨’¨Staff at a further 115 shops were told just before Christmas that their shops would close over the next two years as the stores’ leases expire, and the company entered into a compulsory 90-day consultation period, which is due to end on March 17.’¨’¨

Aird-Marsh said the remaining shops selected for closure had another eight weeks to secure their future. "This key booking period, up to mid-March, is a chance for staff to show why the targeted stores should stay open." They should be looking to improve bookings, find new business or look at ways to work with other sister stores in the same location, he said.’¨’¨

Of the shops that Thomas Cook plans to close, 60 are from the Thomas Cook/Going Places estate, affecting 388 staff, 47 are from the Co-operative Group employing 223, and eight are from Midlands Co-op, with 50 staff. They have been selected either because they are unprofitable, there are duplicate stores in one location or their leases are due to expire.

Chief executive mainstream UK Ian Ailles said Cook was "delighted’ with the Co-op shops which Cook had acquired through its merger of the two retail brands last year. "They are performing very strongly," he added.’¨

Thomas Cook shops still account for 48% of its mainstream package holiday sales, while 20% are sold online and 13% are sold through the Co-op. Its research shows that while 54% of its customers book through a single channel – either online, in a shop or over the phone, 25% who visited its shops booked on the internet and 16% who researched their holidays online went to a shop to book and 18% booked via a calls centre.’¨’¨

"For us, it is absolutely essential that we are in bricks, calls and clicks," said Ailles. When asked if Cook was looking to close more shops in the future, he said: "I’m comfortable with the shape of our distribution, but obviously that will change in line with consumer demand."

By Linsey McNeill