Waitrose staff are at risk of unemployment, facing a mandate for more flexible working hours.
- The retailer has initiated a consultation for contract changes via the “Simpler Shops” project.
- Waitrose aims to achieve significant productivity savings to counter financial losses.
- There is a legal requirement for employee consent before any changes to contracts can occur.
- Market share and sales figures indicate a downward trend, contributing to these strategic shifts.
Waitrose employees on the shop floor may face job losses if they do not consent to more flexible working hours. This move is part of the retailer’s broader strategy to reduce operational costs in response to the prevailing cost-of-living crisis.
The initiative, known as the Simpler Shops project, involves a consultation process with employees to discuss potential changes to their contracts. The Financial Times reported that Waitrose has claimed it incurs a loss of £400 annually for each full-time employee, with a third of its working hours not aligning with demand.
To address these inefficiencies, Waitrose seeks to achieve productivity savings amounting to £50 million per year. The retailer aims to better align work patterns with customer demand, potentially contributing to the group’s overall savings target of £873 million by January 2026.
Despite these plans, it remains illegal for employers to alter contracts without employee consent. Waitrose’s retail director, Tina Mitchell, highlighted the importance of adapting work patterns to maintain the partnership’s future form, noting a risk of jeopardising its existence otherwise.
Waitrose’s market performance has been under pressure, with its market share dropping from 4.6% to 4.4% in the 12 weeks leading up to August as per Kantar data. Furthermore, a reported decrease in sales by 3% to £7.31 billion was noted in March, coinciding with broader financial losses experienced by the John Lewis Partnership.
Waitrose’s strategic shift to flexible hours is essential for its financial resilience amidst declining market conditions.
