Tesco has issued a statement to state that it plans to close fresh food counters in around 90 of its stores, as well as introduce other 'simplification' measures to its stores, which could affect up to 9,000 employees.
The retailer made the statement in response to reports at the weekend that as many as 15,000 jobs were at risk at the retailer, as it sought to streamline its store operations.
As well as closing in store counters in 90 outlets, the remaining 700 will trade with either a 'full or flexible' counter offering.
Tesco will also simplify its stock control approach, 'with fewer hours needed' to complete the procedures, and also reduce hours related to in-store merchandising. In addition, it plans to introduce self-service 'colleague kitchen areas' for staff across its store network, reducing its reliance on third-party caterers.
Tesco added that it does not plan to make any changes to its in-store bakeries.
Redeployment
Tesco said that it estimates that up to 9,000 employee roles could be impacted by the changes, adding that its 'expectation is that up to half of these colleagues could be redeployed to other customer-facing roles'.
“In our four years of turnaround we’ve made good progress, but the market is challenging and we need to continually adapt to remain competitive and respond to how customers want to shop," said Jason Tarry, Tesco UK and Ireland chief executive.
"We’re making changes to our UK stores and head office to simplify what we do and how we do it, so we’re better able to meet the needs of our customers. This will impact some of our colleagues and our commitment is to minimise this as much as possible and support our colleagues throughout.”
Analyst Comment
Commenting on the retailer's move, Catherine Shuttleworth, chief executive at Savvy, said, "The news that Tesco is reviewing its in-store fresh counters is not hugely surprising. These counters are expensive to run and with constant evolution of very good and efficient fresh food to go products means that shoppers are increasingly looking for alternative solutions elsewhere in store.
"This alongside the insatiable need for convenience from shoppers mean that queuing at counters is a thing of the past."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
