H&M contact centre in heart of Edinburgh could close with hundreds of jobs at risk

It has been reported that staff of the Swedish-headquartered group who work at Waverley Gate at the east end of Princes Street face an uncertain future as the firm’s lease for the site is set to end in the first quarter of 2025.

The clothing giant, which has branches nearby in the St James Quarter and on Princes Street, is reported to have notified relevant workers that it is considering closing the premises when the lease expires, with an internal communication to staff said to state: "If the centre does close, we will explore all available suitable alternative roles with you during the consultation process. We want to make it clear that this proposal is not based on the performance that you have all contributed towards over the past years. We are appreciative and thankful for the work that you do."

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A spokesperson for H&M told The Scotsman: “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company.

“The current lease agreement for our customer service site in Edinburgh will end in March 2025. In connection with the lease soon ending, we looked into the scope of our operational set-up at the site to ensure that it is flexible and cost-efficient given current and future change in demands. As this is an ongoing process, we cannot share more details, but we are doing everything we can to support colleagues who are affected.”

H&M in its latest results said its net sales for the six months ending May 31, 2024, had increased by 1 per cent to the equivalent of £8.5 billion, while its result after tax amounted to £462 million, up from £286m. However, it said sales for June 2024 were expected to decrease by 6 per cent in local currencies year on year, and also stated: “The situation in the world around us remains uncertain, and households continue to have high living costs. As always, our top priority is to ensure the best value for money in each market.”