Tesco bringing in big change to bakeries across UK supermarkets

Tesco bringing in big change to bakeries across UK supermarkets
-Credit:Reach Publishing Services Limited


Tesco is set to make a big change to in-store bakeries as it axes 400 jobs. Among those impacted include staff at Tesco bakeries, where the supermarket aims to move away from scratch baking in stores to more continental deli-style products.

It will also cut back management in Tesco Mobile phone shops, and axe a raft of head office management positions. Tesco also announced today it would in the coming days launch a consultation over the closure of its Snodland Distribution Centre, in Kent, on the back of previously announced plans to invest in a new distribution centre in Aylesford.

It said the Aylesford site, just three miles from the Snodland DC, was larger with new technology and improved facilities for colleagues. The supermarket giant said that all colleagues at Snodland would be offered a role at the new site.

ADVERTISEMENT

READ MORE: Major burger chain announces sudden closure of 'all' UK restaurants

READ MORE: Last chance to get Marks & Spencer jumper reduced to £20 - 'I have six of these'

READ MORE Foreign Office warns Brits 'barricade yourself in' and 'put phone on silent'

Speaking in December, Ken Murphy, the chief executive of Tesco, confirmed increases to national insurance payments for employers announced in the budget would add £250m a year to the retailer’s wage bill. He said there was “no doubt” the new rules would “impact the cost of doing business in the UK for all industries and particularly for retail”.

However, he added: “This year doesn’t feel any different than the last four years as we have had one major challenge every year” – such as the Covid pandemic, Brexit and supply chain disruption. Murphy said Tesco was aiming to make £500m in cost savings this year and would “work really hard to mitigate the impact of any inflation from a customer perspective” with more efficient distribution systems and cutting waste, which he said would not necessarily involve job cuts.

Murphy said: “We invested to bring the best value, quality and service to everyone, no matter how or where they shopped with us. As a result, we delivered our biggest ever Christmas, with continued market share growth and switching gains.”