Supermarket giant Tesco is shaking up its head office functions to double down on its fast-growing online and quick commerce channels and focus on its customer personalisation capabilities, Retail Week can reveal.
The retailer is creating 250 new roles at its head office, although it has also confirmed that 180 existing roles with the business are being removed, “to ensure that we are running our business as efficiently as possible”.
A spokesman for the supermarket said Tesco’s priority now is “looking after colleagues impacted by these changes, including by helping them to move to alternative roles wherever we can”.
Roles affected will now enter a period of consultation with the business.
Group chief executive Ken Murphy said: “We are committed to giving our customers the best value and service every time they shop with Tesco. As we look forward and anticipate customers’ changing needs, we must ensure we continue to have the right set-up and capabilities.
“To do this in a highly competitive market, we must be efficient and agile in how we run our business. As a result, we have begun speaking to colleagues about some changes to our head office that will involve some roles being removed and new roles created.
“We understand that this will be difficult news for our colleagues who are impacted, and we will do everything we can to support them, including helping them find alternative roles in our business wherever possible.”
The announcement comes after Tesco delivered its highest market share in over a decade during the Christmas period, with like-for-like sales over the festive period up 3.2%.
Pertinent to the announcement, online sales at the retailer soared 11.2% over the period, including its extended Christmas Eve deliveries.
The grocer said that as a result of its strong Christmas showing, it now expects to deliver group adjusted operating profit at the higher end of its guidance of £2.9bn and £3.1bn for the full financial year.
Daniel Adams, Usdaw’s national officer, said: “It remains incredibly disappointing that, while the company still performs strongly, it continues to make decisions like this.
“Usdaw will enter into consultation talks and do all we can to interrogate the business case for the company’s proposals, while seeking the best deal possible for any of our members who are impacted.”
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