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Sainsbury’s snatches No 2 spot from Asda Sainsbury’s snatches No 2 spot from Asda
(less than a minute earlier)
Sainsbury’s is cutting 500 head office jobs in an attempt to slash costs despite overtaking rival Asda to become the UK’s second largest supermarket over Christmas.Sainsbury’s is cutting 500 head office jobs in an attempt to slash costs despite overtaking rival Asda to become the UK’s second largest supermarket over Christmas.
Asda lost out to its closest rival as sales slid 1.7% in the 12 weeks to 4 January, its worst quarterly sales peformance in at least 20 years, according to the latest data from Kantar Worldpanel.Asda lost out to its closest rival as sales slid 1.7% in the 12 weeks to 4 January, its worst quarterly sales peformance in at least 20 years, according to the latest data from Kantar Worldpanel.
Though sales at Sainsbury’s also fell – by 0.7% over the period – its performance was stronger than its three biggest rivals including Tesco, where sales slumped by 1.2%, and Morrisons, which slumped by 1.7%, the same as Asda. .Though sales at Sainsbury’s also fell – by 0.7% over the period – its performance was stronger than its three biggest rivals including Tesco, where sales slumped by 1.2%, and Morrisons, which slumped by 1.7%, the same as Asda. .
Sainsbury’s said it was making head office redundancies as part of a plan to cut costs by £500m over three years as new boss Mike Coupe attempts to fight back amid dramatic changes in shopping habits. The rise of discounters Aldi and Lidl is forcing all the major grocers to cut prices while they try to fend off increasing competition from up-market grocers Waitrose and Marks & Spencer as well as a switch to online and convenience stores. Sainsbury’s said the money saved by job cuts would be used to “fund future investments in areas which really matter to customers.”Sainsbury’s said it was making head office redundancies as part of a plan to cut costs by £500m over three years as new boss Mike Coupe attempts to fight back amid dramatic changes in shopping habits. The rise of discounters Aldi and Lidl is forcing all the major grocers to cut prices while they try to fend off increasing competition from up-market grocers Waitrose and Marks & Spencer as well as a switch to online and convenience stores. Sainsbury’s said the money saved by job cuts would be used to “fund future investments in areas which really matter to customers.”
The restructure will bring Sainsbury’s main supermarkets and convenience businesses together. “Some functions will be losing colleagues and others will be taking more on, with the expectation of around 500 fewer roles, spread across all divisions and grades in our store support centres,” the company said.The restructure will bring Sainsbury’s main supermarkets and convenience businesses together. “Some functions will be losing colleagues and others will be taking more on, with the expectation of around 500 fewer roles, spread across all divisions and grades in our store support centres,” the company said.
The announcement comes after Tesco’s new boss, Dave Lewis, last week announced plans to close the supermarket’s Cheshunt head office, where 3,000 staff are based, and cut the number of store managers. Asda and Morrisons have already shed thousands of staff by trimming management jobs in stores and behind the scenes, as they also invest in price cuts and improving food quality.The announcement comes after Tesco’s new boss, Dave Lewis, last week announced plans to close the supermarket’s Cheshunt head office, where 3,000 staff are based, and cut the number of store managers. Asda and Morrisons have already shed thousands of staff by trimming management jobs in stores and behind the scenes, as they also invest in price cuts and improving food quality.
The need for radical change at the major grocers was laid bare by Kantar’s latest data which revealed that discounters Aldi and Lidl increased sales by 22.6% and 15.1% respectively in the three months to January, marking them out as clear winners over the festive season. While Aldi’s pace of growth rose from 22.3% reported last month, Lidl’s slowed from 18.3%.The need for radical change at the major grocers was laid bare by Kantar’s latest data which revealed that discounters Aldi and Lidl increased sales by 22.6% and 15.1% respectively in the three months to January, marking them out as clear winners over the festive season. While Aldi’s pace of growth rose from 22.3% reported last month, Lidl’s slowed from 18.3%.
Fraser McKevitt, head of retail at Kantar, said shoppers were the big winners over Christmas as grocery prices fell by 0.9% on the same time last year. All the major supermarkets have cut prices in recent months in an attempt to challenge the growing popularity of Aldi and Lidl.Fraser McKevitt, head of retail at Kantar, said shoppers were the big winners over Christmas as grocery prices fell by 0.9% on the same time last year. All the major supermarkets have cut prices in recent months in an attempt to challenge the growing popularity of Aldi and Lidl.
“Shoppers chose to buy a little bit more this Christmas compared with last year, a trend which has pushed sales growth up to 0.6%. This is low in historical terms, but a rally for the supermarkets compared with recent months,” McKevitt said.“Shoppers chose to buy a little bit more this Christmas compared with last year, a trend which has pushed sales growth up to 0.6%. This is low in historical terms, but a rally for the supermarkets compared with recent months,” McKevitt said.
The rise in the volume of groceries sold is a boon for retailers, many of which have struggled over the past year. Kantar said the grocery market grew at its fastest pace since August, lifting hopes that a rise in disposable incomes might feed through to supermarkets.The rise in the volume of groceries sold is a boon for retailers, many of which have struggled over the past year. Kantar said the grocery market grew at its fastest pace since August, lifting hopes that a rise in disposable incomes might feed through to supermarkets.