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Asda Looking To Make Cost Savings With Staff And Store Changes

Asda has announced three changes to its operations as it seeks to make efficiency savings amid industry pressure to keep a lid on rising prices.

The supermarket is proposing to replace the overnight ambient and frozen shifts in 184 of its smaller superstores, with staff restocking ambient products between 7pm and midnight, and frozen products between 7am and 1pm instead. Asda stated that the change would mean more staff are on the shop floor during opening hours, with trials showing the move delivered improvements in customer satisfaction and product availability.

If the plan goes ahead, it could lead to the removal of up to 211 night shift manager roles and a change to the working patterns of around 4,137 hourly-paid staff. The retailer noted that the proposal retains the number of hours available for people to work in each store, but would see the removal of a night shift premium paid to these workers on top of their existing hourly rate.

As well as the shift changes, Asda is proposing a 25% reduction in opening hours for all 23 of its in-store Post Office branches following a decline in the number of customers using this service. This would affect 23 salaried Post Office Managers and 200 hourly-paid workers.

The supermarket is also looking at closing 7 of its 254 in-store pharmacies due to low usage, which would affect 48 hourly-paid staff and 14 pharmacists.

“The retail sector is evolving at pace and it is vital we review changing customer preferences, along with our own ways of working, to ensure we are operating as efficiently as possible, so that we can continue to invest and grow our business,” said Ken Towle, Asda’s Retail Director.

“We are now entering a period of consultation with our colleagues on these proposals. We recognise this will be a difficult time for them and will do all we can to support them through this process.”

NAM Implications:
  • Essentially Asda is reviewing changing usage and cutting where possible.
  • Eliminating night shift activity has to be part of this policy.
  • Therefore anticipate reductions in outlets and services…
  • …with some disruption in the aisles because of shelf refilling.
  • Welcome to the New Norm…