QVC Cuts 100 Jobs at Headquarters
Home shopping network QVC has laid off 100 people at its West Chester, Pa. headquarters. The company has decided to reallocate resources to focus on its West Coast expansion. The Philadelphia Inquirer reports QVC scared investors last month when CEO Michael George acknowledged a mysterious summer drop in women's clothing sales. The drop also happened around the same time Amazon.com introduced its fashion section. This year marks the first time QVC's shares have fallen below $21 since 2013. Furthermore, this is the second time this year QVC has laid off more than 100 workers at its headquarters.
Total Retail's Take: QVC is feeling the effects of a competitive e-commerce market, which now includes Amazon moving into (and taking market share) fashion. One of the smartest moves QVC made was acquiring popular lifestyle brand Zulily. QVC was after the attention of a younger, digital audience with its Zulily acquisition. However, its follow-up plan has been lacking. Is the home shopping network shifting focus to e-commerce?