Retail news round-up on February 1, 2016: Tesco to cut pay rates, Morrisons' food price cuts and Sainsbury's told to up offer value for Home Retail.
Tesco to reduce pay for staff working on Sundays
Tesco is poised to cut its staff pay rates for working Sundays and Bank Holidays, late nights and overtime hours in a move to curb costs, according to This is Money.
It is believed employees at the retailer used to receiving double time for Sundays and Bank Holidays will be told that they will get just time and a half from July – a pay cut of 25%
And a premium for working the hours 10pm-midnight will be scrapped as part of the pay review.
A Tesco spokesperson said in response to the claims, 'We have reached a positive agreement on a two-year pay and benefits package for store colleagues, which is one of the most competitive packages in the supermarket industry and is good news for the large majority of colleagues."
Morrisons announces fresh food price cuts
Morrisons has fired the gun on a fresh supermarket price war by slashing the price of more than 1,000 fresh food items.
The grocer said it is rolling out a discount of 19% on selected products across fruit and vegetable ranges for atleast three months.
The supermarket retailer also said it would use it own fresh food manufacturing business to help keep prices down
Major Home Retail investor pressures Sainsbury's for higher offer
Sainsbury's is facing increased pressure from a major Home Retail Group shareholder to table a higher bid for its takeover.
Schroders, which owns a 20% stake in Argos owner, is understood to have told the grocer that the deal would need to be worth at least £1.4bn, meaning to offer 165p a share, well above the 150p price.
Chief executive Mike Coupe said last month that he would be prepared to walk away if a sensible price could not be reached.