More Thomas Cook and Co-Operative shops could face closure as the operator concentrates on increasing on-line business.
Interim group CEO Sam Weihagen confirmed that 115 shops will close imminently leading to 660 job losses. They are currently undergoing a 90-day consultation period.
And the company confirmed overall 200 shops – which are equally distributed between Thomas Cook and Co-Operative Travel outlets – will close during the next two years.
He agreed that the focus on internet sales growth implied a further reduction in shops but could not put a figure on how many or when.
As an example he said that in Scandinavia there were 200 shops in the Nordic region in 2003, now there are 11.
Weihagen said: “The ship is not coming here so quickly. It’s up to the development of the UK consumer and their profile.
“We will adjust the shops according to profitability and those that are giving value to customers and the customers appreciate that.”
Thomas Cook has brought the five major global websites on a common platform, improving design and on-line marketing but the company agreed, the ‘proof of the pudding will be in the eating of it’.
When looking at the losses, the company had a substantial IT write-off which was an abandoned central reservation system after looking at the further cost and time it would take to complete.
In line with the current trend of increasing top executives’ personal responsibility, Weihagen said that measures had now been put in place to claw back money from former executives if they were deemed responsible in the future.
By Diane Evans
