Bloomberg News

PPR's Redoute May Cut Jobs, Close Stores as Mail-Order Declines

October 21, 2008

PPR SA (PP)'s La Redoute mail-order unit may cut 151 jobs at its head office and may shut all of its 81 stores, which employ 430 people, citing a shrinking market and competition that's driven down prices.

La Redoute, which says it has 18 million customers, will focus on the Internet as its most important sales channel, according to an e-mailed statement today that followed a presentation to employee representatives. The PPR division also plans to transfer 91 employees to another company that would run mail-order handling.

``The home shopping market is characterized by a decline in traditional mail order, which has not been sufficiently offset by growth in online sales, as well as by heightening competition and a downward trend in prices,'' the statement said.

Paris-based PPR's other units include the Gucci Group luxury business and Conforama furniture chain.

To contact the reporter on this story: Albertina Torsoli in Paris at atorsoli@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong in Berlin at kwong11@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus