Thomas Cook to axe 50 stores, putting 400 jobs at risk

The company says it will be closing its stores in Brownhills and at the Co-op Xtra store on Boley Park in Lichfield. The closure move affects Thomas Cook and Co-operative Travel branded stores and will take place between now and March 2018.

Thomas Cook said that the affected stores are either in close proximity to other outlets or are located where a decline in footfall has impacted profitability.

There are around 690 stores at present, and the two doomed stores are among 18 Thomas Cook outlets across the Black Country and southern Staffordshire. Among those escaping the axe are the two outlets at the Merry Hill shopping centre and a pair in Walsall – one at the Sainsbury store on the Reedswood Retail Park and another in Park Street. It also has two outlets in Stafford.

The holiday giant also has stores in Wolverhampton’s Wulfrun Centre, in Oldbury, the Sandwell Centre in West Bromwich, in Aldridge, Halesowen, Stourbridge, Rugeley, Cannock and Kidderminster and a second Lichfield store, in Bore Street. All are remaining open.

A rise in online travel bookings was also flagged as a reason for the closures, with the group saying that just 47 per cent holidays were booked in store this year while online sales in the UK grew by 27 per cent.

Thomas Cook retail and customer experience director Kathryn Darbandi said: “We continually review our network of stores across the UK to make sure we’re offering customers the best of Thomas Cook, and it is clear that to succeed we have to operate as a truly omni-channel business.

“We’re one Thomas Cook to our customers and we will offer them a world-class service whichever channel they chose to book, be that retail or online.”

The announcement caps a torrid week for the high street, with RBS, Lloyds and Yorkshire Building Society all also outlining store closure plans and job cuts.

Last month, Thomas Cook revealed a 40 per cent plunge in UK earnings as it suffered amid “challenging” trading and a hit from the weak pound.

The holiday giant reported underlying earnings of £52 million for the UK division in the year to September 30, down from £86 million the previous year after it was knocked by rising hotel prices, the pound and intense competition in the Spanish market.

It also said its costs were sent surging after facing a torrent of fraudulent illness claims, and after supporting 10,000 customers caught up in the devastating Hurricane Irma.

The group said it has launched action to return its UK division to profitable growth by slashing costs, taking legal action against illness fraudsters and focusing on fast-growing holiday destinations Turkey and Egypt as demand returns to the countries.