Retail news round-up on February 12, 2014: Tesco plans restructure at middle management level, Bestway full year pre-tax profit up.
Tesco plans restructure at middle management level
Tesco is working on a shake-up of middle management that might lead to roles being cut, The Financial Times reported. Last summer, the grocer made sweeping changes among its senior and middle managers, making 50 redundant. The latest shake-up would complete this process, according to people familiar with the situation, with a restructuring below senior management level. The process is also likely to remove some duplication between central and local country functions. The latest restructuring is expected to impact roles at Tesco’s head office in Cheshunt, and its office at Welwyn Garden City. It is also possible that some teams, such as those related to Tesco’s multi-channel operations, may expand.
Bestway full-year pre-tax profit up 6.6%
Britain’s third-biggest wholesaler Bestway recorded 6.6% growth in its full-year pre-tax profits to £184.6m from £173.2m. In the year to 30 June 2013, sales inched up 1.2% to £2.52bn. Its wholesale business saw a 6.9% slump in profits to £54.3m for the 12 months, on flat sales of £2.34bn. Its wholesale profits plunged after it was forced to cut margins to support its customers, it said.