Tesco management shake-up and hot counter closures leaves 2,100 roles at risk
The UK’s largest supermarket chain said it has seen a significant decrease in demand for the counters since 2019 and that customers no longer say they are a big reason for them to visit shops.
By Sarah Taaffe-Maguire, business reporter
Tuesday 31 January 2023 13:01, UK
File photo dated 26/08/16 of a general view of a Tesco shop sign in central London, as Tesco bosses have warned they are seeing “early indications of changing customer behaviour” due to pressure on households from soaring inflation.
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Tesco has announced a plan to shake-up management and close hot counters and delis which will impact approximately 2,100 jobs.
The plan will introduce around 1,800 new shift leader roles in stores, leading on the day-to-day operational duties on the shop floor, the UK’s largest supermarket chain said.
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The counters and hot delis will close from 26 February, the retailer added, after ongoing reviews of the counters have taken place since 2019. But most hot counters and delis have already been removed from the majority of shops, it said.
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Since 2019 Tesco said it has seen a significant decrease in demand for the counters and that customers no longer say they are a significant reason for them to visit stores.
All workers affected by the closures will be offered alternatives roles, it said, but it did not say how many staff work on counters and delis.
Hot and deli counters may not disappear entirely, Tesco said. “Where we can work with a third party to offer a counter experience in-store, we will continue to do so.”
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Jason Tarry, Tesco UK and ROI chief executive, said: “These are difficult decisions to make, but they are necessary to ensure we remain focused on delivering value for our customers wherever we can, as well as ensuring our store offer reflects what our customers value the most.”
The changing management structures will impact around 1,750 workers as the number of lead and team managers in large shops will be reduced.
Tesco said those affected will have the option of moving into shift leader roles “with financial support” or taking redundancy.
An estimated 350 workers will be impacted by a series of localised changes, such as the closure of eight pharmacies and reduced hours at some in-store post offices, the store group added.
Providing more detail about the management staff affected, Tesco said in a statement: “With the introduction of these new shift leader roles and realignment of management roles, we have taken the difficult decision to reduce the number of lead and team managers in our large stores, impacting around 1,750 colleagues.
“We are supporting colleagues impacted by these changes, who will have the option of moving into shift leader vacancies with financial support or taking redundancy.”
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The retailer also said it will enter a consultation process with Tesco’s union, the Union of Shop, Distributive and Allied Workers (USDAW) and highlighted it had around 2,000 vacancies across the business, in addition to the more than 1,800 new shift leader roles it will be introducing to stores.
