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ASDA to undergo major restructure

ASDA is creating 5,630 new roles but making 1,360 redundancies as part of a major restructure.

The 5,670 new roles are made up of 4,008 section leaders and 1,622 section managers. Asda said some of the 1,360 people expected to take redundancy will do so because they chose to leave or did not meet the selection criteria.

The Leeds-headquartered supermarket announced that it was embarking on a major restructure in May. It said the move was to help place more focus on e-commerce, such as click and collect services.

The change, in the retail giants 578 UK stores, is part of the strategy that Asda unveiled last November in response to intense structural changes in the market that it identified in 2012. It is a strategy which has seen Asda’s market share increase ahead of its direct competitors over the last six months. In the 15 weeks to April 20, Asda grew sales, excluding petrol, on a like-for-like basis at 0.1%. Total sales grew 1.3%.

Asda chief executive, Andy Clarke, said: “As much as it is my job, and privilege, to be CEO of this business and to do what is right for Asda as a whole, this is one of the most difficult decisions I’ve had to make. Whilst I genuinely believe that it is the right decision for the future of Asda, knowing that it will result in valued colleagues leaving us is not easy.

“Every supermarket must adapt to the intense changes in UK retailing or they will get left behind. We spotted this nearly two years ago, responding with a new strategy and taking time to thoroughly examine our structures, test scenarios, talk to our colleagues and adjust our proposals accordingly. This thorough process has helped us to reach this difficult decision today.”

The Yorkshire retailer says that the move will create more flexible store management structures to satisfy the constantly evolving shopping habits of supermarket customers today and in the future.

Over the coming weeks, managers affected by the changes across Asda stores will either begin training for their new jobs or take a redundancy package.

Source : Ellie Newton-Syms - The Business Desk
www.thebusinessdesk.com/yorkshire/news/639364-major-restructure-at-asda-announced.html

03 July 2014

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