Partly Cloudy

Partly Cloudy

max temp: 23°C

min temp: 15°C

Norfolk Business Awards 2018

Supermarket Sainsbury’s puts “thousands of jobs” at risk in restructure

PUBLISHED: 12:12 23 January 2018 | UPDATED: 16:47 23 January 2018

Sainsbury's supermarket, in Hunstanton. Picture: Chris Bishop

Sainsbury's supermarket, in Hunstanton. Picture: Chris Bishop


Sainsbury’s has revealed it is to cut thousands of jobs, just a day after rival Tesco announced 1,700 management roles were to be axed in a restructure.

Despite reporting a record Christmas season the supermarket giant, a member of the so-called “big four”, has said it is to cut store management roles with the jobs being replaced by “better paid” new roles.

READ: Tesco to cut 1,700 line manager jobs

The group said workers have the choice of either applying for the new roles, taking more junior positions, or face redundancy.

Sainsbury’s retail and operations director Simon Roberts, said: “The proposals will introduce a more efficient and effective structure, designed to meet the challenges of today’s retail environment. They will deliver cost savings to be invested in our customer offer and in our colleagues as they continue to provide the very best service for our customers.

“Our intention is not to reduce overall headcount as a result of these proposals.

“I appreciate this will be a difficult time for those affected and we will fully support our people through these changes.”

Sainsbury’s enjoyed a strong festive period with grocery sales rising 2.3% and convenience sales leaping 8.3%.

Tesco announced on Monday 1,700 line manager jobs were to be removed from stores but 900 positions with a broader remit would be created.

Analysis by business writer Doug Faulkner

The latest job cuts announced by one of the “big four”, Sainsbury’s, follows closely on the heels of that of rival Tesco.

Both are shaking up their management structures, both made cuts in 2017 and both have made acquisitions in recent times – Tesco buying wholesaler Booker while Sainsbury’s bought Argos.

Naturally there will be some efficiencies to be made when integrating new businesses into a group – that is part of the reason for making a purchase – however there are also other factors at play.

Food prices and inflation have risen sharply over the past 18 months, while online sales continue to grow and discount rivals Lidl and Aldi march on to greater successes and market share.

While both Tesco and Sainsbury’s emerged from Christmas with positive sales, 1.9% and 2.3% up on like-for-like sales for the festive period, it was the discounters that really made waves.

The rise of convenience shopping is another part of the picture: Sainsbury’s saw convenience sales surge 7.3% and online grocery sales leap 8.2% over the festive season.

The increasing automation of our supermarket visit could also be a factor – we know all too well the ubiquity of the self-service checkouts (and its familiar refrain of “Unexpected item in the bagging area”). Our changing shopping habits, towards smaller and more regular ‘top-up’ shops, lend themselves to these devices.

If consumers are happy to do more regular, smaller shopping trips then the need for bodies on the shop floor will continue to decline.

Search hundreds of local jobs at Jobs24

Highways chiefs are monitoring gusts and wind speeds as Storm Ali makes its way to Suffolk.

Two primary schools in Ipswich are hoping to join forces to form a multi-academy trust, this newspaper can reveal.

A man who was racially abusive to a Suffolk bus driver after he was asked to stop drinking alcohol from a bottle has been jailed for 70 weeks.

A tree brought down in today’s high winds is has blocked part of the B1067 near Bramford.

A prisoner has absconded while on leave from an Ipswich medical facility.

Ipswich is finally getting a brand new buffet restaurant in the town centre after two years of planning and development.

Broadcaster, author, explorer and geographer Nicholas Crane will be speaking on the challenges facing Suffolk’s coastline at a conference in the county next month.

A fallen tree is blocking the railway tracks at Needham Market causing severe disruption to passengers.

A traditional pub in Suffolk has become the first in Britain to go cashless, its landlord has said.

We have been all over Ipswich visiting primary schools to take pictures of your children in their new classes - find out when you can pick up your copy.

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24