Tesco Restructures Large Store Bakeries Leading to Job Losses

British retailer Tesco has announced it started to adapt bakeries in large stores to meet changing customer demand. This means that the retailer will offer less baked from scratch varieties, while  1,816 employees will be laid off during the restructuring.

“Our bakeries are an important part of our offer for customers and will remain so. However, over recent years, we have seen a big shift in customer tastes and preferences. Customers are buying fewer traditional loaves of bread and are increasingly looking for a wider range of options, with sales of wraps, bagels, and flatbreads growing. In light of this, we have undertaken a review to make sure our bakery operation is relevant for the way the market and our customers have evolved,” Tesco’s officials announced.

From May, Tesco is making the following changes in the large in-store bakeries:

• Altering the space and range to cater to changing customer demand, including the increase in alternatives to traditional loaves.
• Tesco will continue to offer scratch baking in 257 stores but it will make some changes to other bakeries. In 201 stores, the most popular products will continue to be baked from scratch with other products moving to part-baked. And in 58 stores Tesco is converting the bakery to full bake-off, where all products are delivered pre-prepared, then baked and finished in store.
• Improving the customer experience by investing and continuing to roll out new, up-to-date fixtures as well as growing the regional bakery ranges in partnership with small local suppliers.
• Due to some stores doing less scratch baking, as well as the simplified routines these changes will bring, Tesco will need fewer employees to work in these areas. As a result, there are 1,816 bakery employees being put at risk of redundancy. Tesco says it will support the employees impacted, including finding an alternative role from the many thousands of vacancies the retailer will have available across their store networks between now and May, for those who wish to remain.

Jason Tarry, UK & ROI CEO, said: “We need to adapt to changing customer demand and tastes for bakery products so that we continue to offer customers a market-leading bakery range in store. We know this will be very difficult for colleagues who are impacted, and our priority is to support them through this process. We hope that many will choose to stay with us in alternative roles.”