Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Sainsbury to Implement Layoffs Under Expense Reduction Program

 

Sainsbury's

J Sainsbury Plc plans to cut about 500 jobs at its store support centers as U.K. grocers seek to bring down costs amid a supermarket price war, Bloomberg said.

The reductions at centers located in London, Manchester and Coventry are the result of a cost and structural review taken by Sainsbury’s board, the company said today. About 13 percent of the workforce at the locations will be affected, a company representative said by e-mail, the report said.

The cuts are part of three-year program to reduce expenses by 500 million pounds ($758 million) announced by Sainsbury in November. They follow store closure plans announced in the past week by rivals Tesco Plc and William Morrison Supermarkets Plc as U.K. grocers seek savings amid the battle with discounters Aldi and Lidl. Morrison said today it plans to shut 10 loss-making stores employing more than 400 people, Bloomberg said.

Sainsbury’s cuts will leave the grocer “in a stronger position to deliver our new strategy and better equipped to win in these times of change” Chief Executive Officer Mike Coupe said. “I recognize that these changes will be difficult.”

Sainsbury’s announcement comes on the day that researcher Kantar Worldpanel said the grocer had the best results of the U.K.’s four biggest supermarkets over the last 12 weeks, sending the shares up 3.6 percent at the close in London, the report said.

Sales at the retailer fell 0.7 percent in the 12 weeks ended Jan. 4, Kantar said, while Tesco, Morrison and Wal-Mart Stores Inc.’s Asda all recorded declines of more than 1 percent, Bloomberg said.

Sainsbury’s stronger performance over the holiday period means it has regained its position as Britain’s second-biggest supermarket behind Tesco, Kantar said, surpassing Asda’s market share for the first time since 2003, the report said.

Sainsbury had 16.9 percent of the market in the latest period, compared with Asda’s 16.8 percent. Tesco’s share declined to 29.1 percent from 29.6 percent a year earlier, while Aldi and Lidl’s combined share rose to 8.3 percent from 7.1 percent a year ago, Kantar said, according to Bloomberg.

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement