Search

Asda to cut hundreds of jobs at UK head office

File photo dated 01/05/15 of the entrance to Asda's head office in Leeds, as the supermarket is set to cut hundreds of jobs with the UK's supermarket price war continuing to reshape the industry. PRESS ASSOCIATION Photo. Issue date: Monday January 18, 2016. The chain, which is owned by US retail giant Walmart, said it will make cuts in the

File photo dated 01/05/15 of the entrance to Asda's head office in Leeds, as the supermarket is set to cut hundreds of jobs with the UK's supermarket price war continuing to reshape the industry. PRESS ASSOCIATION Photo. Issue date: Monday January 18, 2016. The chain, which is owned by US retail giant Walmart, said it will make cuts in the "low hundreds" at its Leeds head office, which employs 3,000 people. See PA story CITY Asda. Photo credit should read: Chris Radburn/PA Wire

Asda is set to cut hundreds of jobs as the UK’s supermarket price war continues to reshape the industry.

The chain, which is owned by US retail giant Walmart, said it will make cuts in the “low hundreds” at its Leeds head office, which employs 3,000 people.

The cuts come as the grocer is expected to post the worst sales figures among its major rivals for the key Christmas trading period.

The industry’s so-called Big Four players - Asda, Tesco, Sainsbury’s and Morrisons - have seen prices fall for more than a year under pressure from discounters such as Aldi and Lidl.

An Asda spokesman said: “As a result, the industry faces major challenges and the certainty of permanent structural change. In the context of this, we also have to further change the way we do business.

“Today, we have started to talk to our colleagues in head office functions about what this means for them. We have made some difficult but necessary decisions but we must discuss these with our colleagues before we talk publicly.”

Analysts expect Asda to turn in quarterly like-for-like trading covering the Christmas period down by around 3.5%, compared with a year ago.

This comes on top of a November update, which revealed that like-for-like sales fell 4.5% in the 13 weeks to September 30.

At the time, Asda chief executive Andy Clarke said the decline highlighted a “challenging” quarter for the group, but put faith in his recently-announced turnaround plan - dubbed Project Renewal - to bolster trading.

Over Christmas Morrisons posted a 0.2% rise in same-stores sales for the nine weeks to January 3, while Tesco reported a 1.3% rise in like-for-like sales over the six weeks to January 9.

Sainsbury’s posted a 0.4 like-for-like sales fall in the 15 weeks to January 9, which was lower than expected.

Asda announced a fresh 18-month overhaul in October which will see it slow store expansion in London, ease up on plans to build more stand-alone petrol stations across the UK and scale back the rollout of its “click and collect” scheme as it seeks to cut costs.

However, it will speed up investment to revamp 95 of its largest stores and spend more money on offering customers lower prices in an attempt to take on the discounters.

It will also permanently close its business-to-business sales operation, which focused on selling direct to other businesses, in the next few months.

Search hundreds of local jobs at Jobs24

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Eastern Daily Press visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Eastern Daily Press staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Eastern Daily Press account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Management Jobs

Show Job Lists

Insight

Kevin Jordan is Credo Asset Finance's prestige and luxury vehicle specialist.

Sponsored: If you’re looking for a dream car for Christmas, Credo Asset Finance’s prestige and luxury vehicle specilist can find you the right deal, says Simon Gray.

From left, Sarah Gilder and Dominique Fell-Clark of Digibee. Sarah has taken part in a Future50 work shadowing project with neighbouring business The Avanti Group.

How can you bring new skills into your business when staff turnover is low and money may be tight? SHAUN LOWTHORPE talks to the Future50 businesses swapping ideas as part of an informal work shadowing programme.

Green 100

cover

Enjoy the Green 100
digital edition

Read

Mustard TV

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100

Business Most Commented

Newsletter Sign Up