Tesco plans to replace 1,700 managers at UK convenience stores

Company - Mohit Shah - Feb 28,2017

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tesco plans to replace 1700 managers at uk convenience stores

Britain’s biggest retailer, Tesco, would be soon replacing 1,700 deputy managers at its various Express convenience stores with lower-paid staff.

The retailer announced that deputy managers would be provided new roles, redundancy payments or simply be redeployed.

It was further revealed that the positions will be taken over by an extra 3,300 lower-paid staff.

Last month, the supermarket group agreed to a merger with wholesaler Booker worth 3.7 billion-pound ($4.6 billion). This current strategy is aimed towards restructuring the business.

The company said that these changes would lead to an increase of about 1,500 positions, swelling the number of staff designated on the shop floor which serves customers.

The managing director of convenience stores at Tesco, Tracey Clements, commented that to expand the service towards customers at the Express stores, the company is aiming to add more “colleagues on the shop floor”.

She also added, "We appreciate that these changes will impact our deputy manager colleagues”, and the firm will do everything in order to support the staff throughout this period.

In the current week, close to 1,700 deputy managers will initiate a 60-day consultation process and would be provided shift leader positions and other alternative roles in supplementary Tesco stores.

In October, Tesco’s Chief Executive Dave Lewis prepared a plan to earn operating profit between 3.5 pence and 4 pence for every pound which is spent by shoppers by 2019-20.

Tesco enjoys the reputation of being Britain's biggest private sector employer which manages a staff of 310,000.

Since the past few years, UK's big four supermarket groups have been struggling from serious competition imposed by smaller rivals such as Lidl and Aldi. Moreover, the declining demand for weekly shops at big out-of-town stores has pushed the companies to revise their expansion plans.