Tesco to end 24-hour store openings as it tries to tackle slump in profits
2,000 staff members enter 45-day consultation and are at risk of redundancy
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Tesco is to end its 24-hour store openings in an attempt to adjust to changing customer habits and to shore up profits amid disappointing financial performance.
Long opening hours are now seen as an inefficient use of resources by the supermarket, which has announced plans to change its service model at nearly 50 stores.
The plans, following a profit warning by the UK's biggest retailer in April and a £6.4bn pre-tax loss reported last year, include switching stock replenishment to the daytime, cutting the number of service counters and ending 24-hour openings.
The decision to reduce hours at 20 stores comes after it was revealed that Tesco would look to extend its cutbacks to night-time operations, along with other cost-saving measures, as part of a "recalibrating" of its premises.
Tesco said 2,000 staff members, who are now at risk of redundancy, have entered a 45-day consultation period over the changes, which will affect Tesco Extra branches and superstores.
Tony Hoggett, Tesco’s retail director, told The Grocer the changes were solely aimed at updating and improving their customer service.
Mr Hoggett said the company realised there were sometimes "only one or two customers in the store" during late-night openings.
He added: "Customers are changing, shopping habits and the competition are changing, and our service models have to change over time to reflect that.
“What we found is that moving from night-time to twilight hours has a positive impact on customer service, whereas when these stores are opening for 24 hours it can mean that you are not at your best when you are at your busiest. At the trial stores, we have seen that service has improved noticeably on all measures.
"It is absolutely not about saving money. That's way down the list versus increasing morale and looking to improve service, which is my main job and something we have done very well over the past two years."
Tesco will now have just over 300 stores (out of 6,814) that open 24 hours a day.
Earlier this month, Tesco agreed to sell its Dobbies Garden Centres chain for £217m, as it continues to sell peripheral assets to focus on reviving its main supermarket business.
Tesco chief executive Dave Lewis recently revealed the amount of food wasted by the company rose 4 per cent in the year ending April 2016 to the equivalent of around 119 million meals.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments