Adapting to the New Normal in Retail and Travel
- TUI to close 166 stores in UK and Ireland
- Impacted staff roles to be moved to home working sales and service team
- Retail advisers to be relocated to remaining high street stores
- Digitalisation acceleration due to Covid-19 impact on customer behaviour
TUI is shuttering 166 stores in the UK and Ireland due to changes in customer behaviour caused by the Covid-19 pandemic. The company will leave 350 stores in its retail network after evaluating local market data, consumer trends, and future travel predictions. Aiming for a more efficient business model, TUI plans to move 70% of the 900 affected staff roles into a home working sales and service team and relocate retail advisers to vacancies in remaining stores. This follows a global announcement to reduce overhead costs by 30%, with approximately 8,000 roles impacted. TUI’s managing director for UK and Ireland, Andrew Flintham, emphasized the importance of adapting to modern customer service needs, stating that 70% of bookings are now made online. The pandemic has accelerated this shift in purchasing habits, with customers preferring to buy or consult travel experts from home.
Factuality Level: 10
Factuality Justification: The article provides accurate information about TUI’s decision to close 166 stores in the UK and Ireland due to changes in customer behavior caused by the pandemic. It also explains the reasons behind this decision and how it will affect staff members. The source is quoted directly and the information is presented objectively without any personal perspective or exaggeration.
Noise Level: 3
Noise Justification: The article provides relevant information about TUI’s decision to close stores due to changes in customer behavior caused by the pandemic and offers some insight into their plans for staff relocation and digitalization efforts. It also includes a quote from the managing director explaining the reasoning behind the decision. While it doesn’t delve too deeply into long-term trends or provide extensive analysis, it is still informative and focused on the topic at hand.
Financial Relevance: Yes
Financial Markets Impacted: TUI’s stock price may be impacted due to the closure of stores and job cuts.
Financial Rating Justification: The article discusses TUI, a travel company, making significant changes in response to the pandemic and its effects on customer behavior. This can potentially affect their financial performance and stock price, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
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