(Bloomberg) -- Tesco Plc said it's cutting 1,600 jobs as it revamps how stores operate overnight and shuts its experimental discount chain Jack's, citing changing shopping habits during the pandemic.
Britain's largest supermarket chain is shifting overnight stock replenishment to daytime at 85 stores and converting petrol stations to pay-at-pump only at night for 36 locations, according to a statement Tuesday. The changes come just hours after Tesco announced it was closing meat, fish and hot deli counters at 317 stores where they're in low demand and shutting Jack's, a low-cost chain with 13 stores.
Tesco said around 1,600 jobs in total from all the changes will be at risk of redundancy but that the company will offer employees alternative roles. There are currently around 3,000 vacancies in the business, the company said.
“We operate in a highly competitive and fast-paced market and our customers are shopping differently, especially since the start of the pandemic,” said Jason Tarry, Tesco's chief executive officer for U.K. and Republic of Ireland.
Retail trade union Usdaw called the potential job cuts “devastating” and said it is entering consultation talks with Tesco.
Tesco said it plans to maintain meat, fish and hot deli counter services in 279 stores. It will also convert six of the 13 Jack's stores into Tesco superstores and close seven. Jack's branded products will still be available to independent stores supplied by Booker, Tesco's wholesale arm.
Jack's was an attempt by former Chief Executive Officer Dave Lewis to operate a cut-price chain to take on German discounters Aldi and Lidl. Tesco said Jack's had helped the supermarket become more competitive and efficient but it had decided to focus on its core business.
Tesco has been streamlining throughout the pandemic and had previously announced the closure of 90 meat and fish counters. It has also reduced the number of bakeries in stores in recent years.
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