Waitrose staff may face job losses amidst calls for flexible working hours to manage costs.
- The retailer launched the ‘Simpler Shops’ project to revise employee contracts for improved efficiency.
- Legal limitations prevent contract changes without staff consent, yet significant savings are targeted.
- Waitrose’s market share and sales figures have been affected by economic challenges and inflation.
- Adjusting work patterns aims to align employee schedules with peak shopping times, ensuring customer satisfaction.
In response to the current economic pressures, Waitrose is urging its staff to accept more flexible working schedules, as part of an effort to curtail operational costs. The introduction of the ‘Simpler Shops’ initiative seeks to modify existing employee contracts, a move that the company argues is critical to maintaining its service quality.
According to statements referenced in the Financial Times, the company estimates a financial loss of £400 per annum for each full-time employee due to inefficiencies in current working patterns, with a third of working hours being deemed ‘misallocated.’ This initiative aims to rectify these issues by unlocking up to 4 million hours in productivity savings, potentially equating to £50 million per year.
Despite the potential benefits, the legal framework requires that any contractual amendments receive employee consent, thus complicating the proposed changes. Nevertheless, the retailer remains steadfast in its objective, aspiring to achieve cumulative savings of £873 million by early 2026.
Recent data from Kantar reveals a shrinkage in Waitrose’s market share to 4.4% over the last year, down from 4.6%. This comes amid a 3% reduction in sales reported in March, highlighting the challenges faced by the John Lewis Partnership, including inflation-induced setbacks resulting in a total loss of £234 million as of January.
Tina Mitchell, Waitrose’s retail director, emphasised in an internal communication the importance of adjusting work practices to safeguard the company’s future. The proposed changes are intended to optimise staff distribution across shop floors, aligning workforce availability with peak shopping periods.
Waitrose’s strategy to encourage flexible working hours underscores its commitment to cost management amidst challenging economic conditions.
