In light of the cost-of-living crisis, Waitrose is proposing changes to employee working hours to enhance efficiency and reduce costs. This has sparked a consultation with staff, who must adapt to new schedules or risk job loss. The move is part of a broader strategy aimed at significant cost savings and operational improvements.
- Waitrose staff may lose jobs if they don’t accept more flexible hours.
- A consultation with employees has been launched for contract changes.
- The retailer aims for £50m annual savings by altering work patterns.
- Market share and sales have recently declined for Waitrose.
- The supermarket cited efficiency and productivity as key motivators.
In an attempt to navigate the ongoing cost-of-living crisis, Waitrose is urging its employees to adapt to more flexible working hours. This decision, taken under the banner of their ‘Simpler Shops’ initiative, has been communicated to the workforce following a consultation last month. Employees face the possibility of job loss should they not comply with the proposed shift changes.
The supermarket’s recent consultation with its staff has paved the way for changes in their working contracts. Waitrose has highlighted significant financial losses – stating a £400 annual loss per full-time employee – as the catalyst for these adjustments. Moreover, they aim to reposition hours that they believe are currently ‘in the wrong place’ to achieve substantial productivity savings.
By reformulating work patterns, Waitrose anticipates generating approximately 4 million hours in productivity savings, translating to about £50 million annually. This move is an integral part of a larger strategy to reach a cumulative group savings target of £873 million by the beginning of 2026. However, it is crucial to note that any changes to employee contracts can only occur with the staff’s consent.
Recent data from Kantar has indicated a dip in Waitrose’s market share, falling to 4.4% in the 12 weeks leading to August, down from 4.6% a year prior. This decrease has been mirrored in the company’s financial performance, with reported sales dropping by 3% to £7.31 billion as of March. Furthermore, the John Lewis Partnership, under which Waitrose operates, recorded a total loss of £234 million in the year ending January 28 due to inflationary pressures.
Tina Mitchell, Waitrose’s retail director, was quoted stating that the company must rethink its operational strategies to preserve its current business model. She emphasized the need for ‘the right amount of partners doing the right tasks at the right time’ to adequately address changing shopping patterns and customer demands.
Waitrose recently experienced a service disruption, with customer online orders being cancelled due to a technical issue. This incident adds another layer of challenge as the retailer strives to maintain high levels of customer service and satisfaction.
Waitrose’s initiative aims to bolster efficiency and ensure long-term sustainability amidst current economic challenges.
