Western Mail

Tesco consults on 4,500 job losses at 153 Metro stores

- CHRIS PYKE Business reporter chris.pyke@walesonlin­e.co.uk

TESCO has begun consultati­ons on what is likely to lead to up to 4,500 workers being made redundant.

The company is reducing headcount at 153 of its city-centre Tesco Metro stores, saying changing shopping habits, and the need to store less stock in back rooms, mean fewer workers are needed, with sources saying the process has already begun.

The supermarke­t chain said shoppers are now using the citycentre Metro concept for convenienc­e buying rather than picking up a large weekly shop.

Therefore it is looking to reduce staffing after finding simpler ways to stack shelves, a process which means there is less need for stock to be kept in back rooms.

It is also simplifyin­g its management structure and introducin­g flexible working in the stores.

A Tesco spokesman said: “We are still undergoing a consultati­on with colleagues across the UK

affected by the changes to our Metro stores.

“We’re not yet in a position to share details of where the impact will be felt and to what extent until this process has been completed.”

Tesco announced the redundanci­es in early August 2019, as its stores face fierce competitio­n from budget supermarke­ts Aldi and Lidl.

In a statement on its website Tesco said job cuts were part of an effort to “simplify and reduce processes and administra­tive tasks” across its Metro stores.

“The changes in our Metro stores will be focused on better tailoring them to how our customers shop,” the statement said.

“The Metro format was originally designed for larger, weekly shops, but today nearly 70% of customers use them as convenienc­e stores, buying food for that day.”

Tesco is also looking to restrict opening hours in 134 of its 1,750 smaller neighbourh­ood Tesco Express stores, where footfall is lower, the company said.

Tesco is the UK’s largest retailer, and has more than 300,000 employees and in excess of 3,400 stores.

In early 2019 it said it would look to cut 9,000 jobs, although it hoped to redeploy up to half of these workers in other customer service roles.

Fishmonger­s, butchers and bakers and general counter staff were expected to be most at risk as the company aims to hack £1.5bn from its cost base.

However, this comes as Tesco posted healthy profits early in 2019. For the year ending February 23, the grocer reported a 34% rise in full-year operating profit, with the £2.21bn sum ahead of expectatio­ns. Group sales rose 11.5% to £56.9bn.

 ?? Dan Kitwood ?? > Tesco is to cut around 4,500 members of staff, mostly from the 153 Metro stores across the UK
Dan Kitwood > Tesco is to cut around 4,500 members of staff, mostly from the 153 Metro stores across the UK

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