Redundancies For Tesco
UK – Tesco, the UK’s biggest supermarket, is to make a string of redundancies within the general merchandising division of the company.
The supermarket is looking to restore its domestic operations performance after poor sales in its non-food departments.
Sources claim that around 34 clothing and general merchandising jobs in the UK will be shed as the retailer reduces its recruitment activities, in what is being noted as the first considerable strategic policy overhaul since Richard Brasher became CEO earlier in 2011.
The last 24 months have seen fairly high levels of recruitment in order to sustain the company’s aggressive plans for growth in the general merchandising area. However, the anticipated growth has failed to happen and Tesco is now planning a change of strategy.
The job losses may be due to the fact that the retailer has discovered its staff can look after both the European and UK buying and merchandising operations, following the UK-based relocation of the department from central Europe.
Results for 2011’s first half, up to August 27, revealed early in the month that Tesco’s like-for-like UK sales (excluding VAT and fuel) slipped by 0.5 per cent, in comparison with 12 months ago. Initially, the company blamed the poor results on a repressed demand for non-food items, especially entertainment and electronics departments – two of the merchant’s biggest product areas.
Overall, like-for-like sales experienced a reduction of 4.8 per cent across all general merchandising, electronics and clothing in the half-year figures.
Bolstering performances in the required departments will be a major focus for the supermarket and changes will include product range overhauls, emphasis on struggling categories and a block on recruitment. Although, according to sources, fashion positions at the head office are currently being filled.
Analyst experts claim that although Tesco is actively competitive within the market, it needs to stimulate customers more in order to increase growth.
Speaking on the job losses Tesco confirmed that, depending on consultations, redundancies would happen to ensure efficiency within the company. The supermarket also said it realised there are economic difficulties out there but it would work closely with staff affected to try to find alternative company positions, where possible.
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