Tesco PLC (LSE:TSCO) will close most of its hot food and deli counters as part of a restructuring that threatens some 2,100 jobs.
In a statement, the grocery giant suggested the counters were no longer viable due to decreased demand in a fast-changing grocery market,
Pharmacies in eight of its stores will also shut, while night-time shifts will be reduced, in-store Post Office opening hours cut and “a small number of roles” shed in its head office.
“These are difficult decisions to make, but they are necessary to ensure we remain focused on delivering value for our customers,” said Tesco UK boss Jason Terry.
Tesco will add more shift leader roles, it said, creating 1,800 new positions - alongside the roughly 2,000 vacancies it already has, which Terry suggested could be filled with staff losing their job in other areas
The reshuffle follows changes made across the UK grocery sector in response to increased operating costs and a squeeze on consumer pockets due to the higher cost of living.
Big four supermarkets Tesco, Sainsbury’s and Asda saw lower sales growth in the four weeks to January 22 than value chains Aldi and Lidl, according to Kantar Group data, at around 6% compared to over 24%.
These boosts to sales were “driven by higher prices rather than higher volumes” though, commented interactive investor analyst Victoria Scholar, “with many consumers trading down to unbranded, value ranges to combat the squeeze on budgets.”