Amid the economic pressure, Waitrose staff may face job changes if flexible hours aren’t accepted.
- The consultation aims to adjust work patterns for productivity, saving £50m annually.
- Legally, contract changes need employee consent, reflecting complex negotiations.
- A market share drop to 4.4% highlights financial strains exacerbating restructuring.
- Plans align with a broader £873m savings target for the John Lewis Partnership.
Amid ongoing economic pressures, Waitrose employees are confronted with potential job adjustments should they refuse more flexible working hours. This development emerges as the retailer seeks to mitigate operational costs during the prevailing cost-of-living crisis. The initiative, termed Simpler Shops, was introduced through a consultation launched late last month, aiming to revise employee contracts.
According to data obtained by the Financial Times, Waitrose reports a loss of £400 annually per full-time employee, attributing inefficiencies to a third of working hours being misallocated. Consequently, the supermarket chain is pursuing a strategy to unlock up to four million hours in productivity savings, translating into approximately £50 million per year by altering work schedules.
It should be noted that employment contracts cannot be legally modified without the consent of the staff, underlining the intricate nature of these ongoing negotiations. This drive for enhanced productivity contributes to the broader financial objectives of the John Lewis Partnership, which aims to achieve cumulative savings of £873 million by January 2026.
Statistics from Kantar reveal a reduction in Waitrose’s market share, declining to 4.4% over a twelve-week period leading up to August, a decrease from the previous year’s 4.6%. This downward trend is compounded by a 3% drop in sales reported earlier in March, marking a turnover of £7.31 billion, coupled with a substantial £234 million loss experienced by the John Lewis Partnership due to inflationary pressures.
Tina Mitchell, Waitrose’s Retail Director, articulated the critical need for this operational transition in a staff video, stressing the importance of having the correct number of employees performing appropriate tasks during peak shopping periods. She underscored the urgency to adapt to evolving customer shopping patterns to ensure the retailer’s continuity in its desired form.
Waitrose’s strategy reflects a critical response to economic challenges, with flexible hour negotiations pivotal to future stability.
