Sainsbury’s to shed 3,500 jobs

Sainsbury’s is to cut 3,500 jobs, mainly from it’s Argos chain, it was announced this morning.

The retailer plans to close more than 400 standalone Argos stores by March 2024, although it says it will open 150 more Argos outlets in Sainsbury’s stores. Jobs will also go in the supermarkets, however, with the closure of delicatessen and fresh fish and meat counters.

Simon Roberts, Chief Executive of J Sainsbury plc said: “As we go into lockdown in England for the second time this year and restrictions are in place across the UK, we know our customers and colleagues are feeling anxious and we will do all we can to support them.

“Our colleagues have done an exceptional job going above and beyond for our customers every day which is why we are giving our frontline colleagues a second 10 per cent thank you payment.

“Above all else today, I want to express my heartfelt thanks to every one of my colleagues in our stores, in our depots, and across our store support centres for all your hard work and for your outstanding team effort.

“We also want to support our communities and those in need and are creating a £5 million community fund for local charities and good causes, in addition to the £7 million we donated to Fareshare and Comic Relief earlier this year. We want to do our bit to ensure that no one goes hungry at Christmas and to support those most in need.

“COVID-19 has accelerated a number of shifts in our industry. Investments over recent years in digital and technology have laid the foundations for us to flex and adapt quickly as customers needed to shop differently. Around 19 per cent of our sales were digital this time last year and nearly 40 per cent of our sales are digital today.

“While we are working hard to help feed the nation through the pandemic, we have also spent time thinking about how we deliver for our customers and our shareholders over the longer term.

“We will put food back at the heart of Sainsbury’s. We are already working to make this happen – we have lowered prices on over 1,500 every day grocery products over the past few months and we will do more of this, focusing on the staple products that our customers buy every day.

“We know that customers are feeling the pinch and we want them to feel confident they will get always get great value, quality and service from Sainsbury’s. We will focus on accelerating product innovation and will bring new and exclusive products to our customers much more often.

“To support our ambition in food, we are accelerating our ambition to structurally reduce our cost base right across the business so we can invest faster back into our core food offer.

“Our other brands – Argos, Habitat, Tu, Nectar and Sainsbury’s Bank – must deliver for their customers and for our shareholders in their own right.

“Argos sales have been strong over the past six months and we have gained almost two million new customers as people have re-connected with Argos. Over the next three years we will make Argos a simpler, more efficient and more profitable business while still offering customers great convenience and value and improving availability.

“We will also make Habitat more widely available in Sainsbury’s and Argos, giving customers access to stylish home and furniture products at more affordable prices. 

“We are talking to colleagues today about where the changes we are announcing in Argos standalone stores and food counters impact their roles. We will work really hard to find alternative roles for as many of these colleagues as possible and expect to be able to offer alternative roles for the majority of impacted colleagues.

“Given the unprecedented circumstances of this year and the challenges facing our colleagues, including the changes we are announcing today, I have informed the Board that if a bonus is payable, I will waive any bonus entitlement for this financial year.

“We are raising our ambitions. By delivering improvements in value and quality and simplifying this business, we will do a better job for our customers and deliver an improved financial performance and stronger shareholder returns.

“Right here and now I and all the team are focused on supporting and delivering for our customers in the days and weeks ahead.” 

Unite the union has called on Sainsbury’s to redeploy its 500 members whose jobs on deli, fish and meat counters are under threat, following today’s announcement by the supermarket giant that it is cutting 3,500 jobs.

Unite said that it was ‘deeply disappointed’ by the news affecting its members working on these counters which have been closed since the first lockdown in March and called for urgent talks to explore redeployment opportunities within Sainsbury’s supermarkets.

It is understood that the redundancy notices for the counter staff will be issued in March next year and come into effect in May 2021.

Unite national officer for the food industry Bev Clarkson said: “This is very disappointing news for our 500 members working on the deli, fish and meat counters.

“We are seeking urgent talks with the management to explore deployment opportunities within Sainsbury’s, given the supermarket’s sales have risen since the first lockdown in March.

“Hopefully, the supermarket can reopen some of these counters, closed since March, once the Covid-19 restrictions are eased and a vaccine comes on stream.

“Sainsbury’s needs to engage more constructively with Unite going forward as this news came ‘out of the blue’ without the detailed consultations we would expect from such an established and well-known company.

“This is very grim news for our members and their families in the run-up to Christmas, and we will be giving them maximum support during this worrying and uncertain time.”

HALF of Scots felt that their trips to the supermarket were vital to combating isolation during lockdown

From our bellies, to our minds, to our hearts: The role of the UK’s supermarkets through COVID-19

Scotland’s new ‘five-tier’ lockdown system comes into effect tomorrow, with each of the country’s 32 local authorities falling into Levels 0 to 4, depending on coronavirus infection rates.

In light of the increase in localised lockdowns due to surging Coronavirus cases, the role of grocers and supermarkets has now become more clear than ever. Not only have they been integral in providing us all with basic living necessities, they have also played a hugely important role when it comes to our mental health. 

The national lockdown in March saw millions of people confined to their homes, fearful of any contact with other people. However, these fears also came with elements of cabin fever as people yearned to once again feel a sense of normal.

For many, the only time this could be achieved was through their weekly shop; a time they were able to (safely) socialise, and gain a glimpse of normality amid the unforeseen circumstances brought about by the pandemic.

In light of this, technology pioneers Ubamarket found that 50% of Scots believed their weekly shop to the supermarket was vital to combating the isolation they were feeling during lockdown. As we experience a tightening of restrictions once again, the centrality of supermarkets in society has now become overwhelmingly clear, with many once again finding solace in their supermarket. 

Now, it is more important than ever that supermarkets and the retail sector alike are able to adapt to the post-Coronavirus climate.

According to many industry commentators, retail technology holds the key to helping supermarkets and retailers transition into the new future of retail as designed by Coronavirus. The implementation of end-to-end tech solutions which help supermarkets to streamline and modernise the shopping experience in keeping with the changing retail landscape. 

Will Broome, CEO and Founder of Ubamarketdiscusses the integral role of supermarkets amid the Coronavirus crisis, and how technology can transform the current in-store offering to ensure long-term success and customer satisfaction:

“Localised lockdowns have highlighted exactly how important local shops and supermarkets are to consumers across the country. An essential presence, our nation’s shop keepers are constantly at the front line, providing everyone with their basic necessities.

“Their presence is absolutely paramount in our efforts to combat the difficulties brought about by the virus, and with half of Scots combating isolation and finding much-needed relief when doing their weekly shop, the centrality of supermarkets has never been clearer.  

“Now, in order to sustain this, the world of retail needs to evolve and adapt to the new Coronavirus climate, moving away from the existing problems the sector has. The constantly changing store layouts, the outdated queues and checkouts, and the lack of communication between supermarkets and their customers are just some of the issues that COVID-19 has made very clear. 

Retail tech offers an all-encompassing solution; in Ubamarket’s case in the form of a simple app; which can put consumers in control, doing away with the need for time-consuming queues, unhygienic checkouts, and confusion about where products are and whether they are in stock.

“In a tech-supported store, customers can simply check ahead of time which products are in stock, be guided to their exact location with an aisle sat-nav, and then simply scan and pay in-app, rather than having to waste time and risk potentially dangerous exposure in queues or tills.

“I for one am extremely interested to see how the retail landscape in the UK will emerge from the Coronavirus crisis, but if one thing is certain, it is the capability of retail technology to help us build the future of retail that we would like to see.”

Little Dobbies to open in Comely Bank

Dobbies, the UK’s leading garden centre retailer, has announced the development of its first small format store – Little Dobbies.

Little Dobbies, which will be located on Raeburn Place in Stockbridge and is scheduled to open in November, is the first of its kind for the retailer that has 68 garden centres across the UK.

The core of the Little Dobbies’ offer will be horticulturally focused with a range of convenience gardening products. This will be complemented by a carefully curated range featuring houseplants and pots; a small range of gifts; and selected seasonal ranges. For opening, the seasonal ranges will feature Christmas items, including decorations, wreaths and hampers.

There will also be a coffee shop, offering hot and cold drinks, as well as takeaway food. 

Graeme Jenkins, CEO at Dobbies, said: “This is an exciting new venture for our team, as we launch the first Little Dobbies. The store will feature gardening essentials for city centre residents and will showcase some of the extensive ranges available at our larger stores and at dobbies.com

“Thank you to everyone who has contributed to the project and we can’t wait to open the doors of Little Dobbies in November.”

Opening hours for Little Dobbies are Monday to Friday, 10:00 -18:00; Thursday 10:00-19:00; Saturday and Sunday 09:00-18:00.

For further information visit dobbies.com

Usdaw welcomes unanimous support for Ne’er Day closing

Happy New Year for shop workers?

Shop workers’ trade union Usdaw has welcomed Holyrood’s Petitions Committee’s unanimous decision to back a petition to end New Year’s Day trading in large stores.

The committee has agreed to write to stakeholders within the retail industry and urges the Scottish Government to conduct the required consultation.

Usdaw launched a petition last year calling on the Scottish Government to launch a consultation on implementing legislation already in place to ban most large shops from opening on New Year’s Day. The Christmas Day and New Year’s Day Trading Act (Scotland) Act 2007 prohibits trading in most large shops on Christmas Day and gave powers to the Scottish Government to stop the opening of those shops on New Year’s Day as well, which has never been enacted.

An extensive Usdaw survey of over 1,000 Scottish retail staff, found that:

  • 98% say that stores should be shut on New Year’s Day
  • Three-quarters feel they spend too little time with friends and family over New Year.
  • Only 4% are happy to work on New Year’s Day or 2 January.

The full survey results can be viewed at: www.usdaw.org.uk/NYDSurvey

Tracy Gilbert, Usdaw’s Scottish Deputy Divisional Officer, said: “We thank the petitions committee for their unanimous support and decision to progress our petition.

“As Jackie Baillie MSP rightly pointed out, the First Minister agreed to look at Usdaw’s campaign, but that was back in January and the Scottish Government is now saying it’s not the right time to do this. It’s been 13 years since the original legislation was passed, so it is difficult to understand when the Government thinks it would be the right time.

“The strength of feeling among our members is clearly demonstrated by our survey and over 3,000 of them writing to their MSPs asking for support. Retail staff work incredibly hard all year round, but it is particularly busy and stressful throughout December. So they deserve to be able to spend time with family and friends.

“Hogmanay and New Year is a special holiday, but this is not reflected in the experience of many retail workers. Under the Christmas Day and New Year’s Day Trading (Scotland) Act 2007 Scottish Ministers may, by statutory instrument, ban large shops from opening on New Year’s Day, subject to consultation.

“On behalf of Scotland’s retail workers, we are urging the Scottish Government to open that consultation and for MSPs to listen to shopworkers’ concerns about their work and life balance. After everything Scottish shop workers have been through this year, as key workers on the frontline of delivering essential services, they deserve a decent break over New Year.”

What shopworkers say:

  • You’re tired from working and don’t really relax or enjoy the limited time you get with the kids. Then you start all over again working New Year’s Day too!!!
  • If, like myself, you have to work Boxing Day and New Year’s Day – it should be paid at least time and half.
  • As a store manager I have had to work Christmas and New Year. A lot of hard work goes into the weeks leading up. By Christmas Day you are exhausted and then back to work on Boxing Day. This year I also have to work New Year’s Eve, New Year’s Day and on the second.
  • I am not happy working till 1930 on both Christmas Eve and New Year’s Eve. By 4pm our store was fairly empty.
  • Finishing times on Christmas Eve and Hogmanay are creeping up later, which has a severe impact on family life for retail workers.

Almost £100m lost through unused shopping vouchers during lockdown, Which? reveals

An estimated £97.7 million was lost on shopping vouchers that went unused during lockdown, according to new Which? research.

The consumer champion found a quarter (25%) of UK adults had a shopping voucher – worth £45 on average – that expired during the period when many shops and businesses were forced to close their doors.

Almost half (49%) of those with an expiring voucher said it was automatically extended by the retailer, while one in seven (15%) said they had to request an extension.

However, just over a third (36%) – an estimated 3.1 million – did not receive an extension on their shopping vouchers worth £30 on average, automatically losing all the money they had left. This equates to an estimated £97.7 million across the whole of the UK.

Those from an older demographic were more likely to lose money, with almost half (46%) of those aged over 55 claiming they did not receive an extension for their shopping vouchers.

Around two in five (42%) of those aged 35-54 did not receive an extension either, however this figure dropped to just one in five (20%) of those aged 18-35.

According to the Gift Card and Voucher Association, the gift card industry is worth £6 billion every year.

Many retailers introduced new Covid-19 terms and conditions during lockdown and offered to extend vouchers. While some proactively reached out to customers, others were not so helpful.

One person told Which? they had emailed a retailer regarding vouchers that were due to expire during lockdown, and received a swift response extending the voucher, while another said they were left “disappointed” when they contacted the company who told them “hard luck, basically”.

Which? is advising anyone who had a voucher that expired during lockdown to contact the company to try and get an extension. All retailers should also be reasonable and extend vouchers that customers were not able to use during lockdown.

Anyone considering buying shopping vouchers should be wary, as coronavirus has had a severe financial impact on many retailers – with some big names disappearing from the high street altogether. The possibility of further coronavirus lockdown restrictions in the near future could also make it difficult to spend vouchers.

Adam French, Which? Consumer Rights Expert, said: “Our research suggests consumers may have lost tens of millions of pounds on expired vouchers during lockdown.

“Many retailers have extended shopping vouchers that expired during lockdown, so if you have a voucher you were unable to use it is worth contacting the company.

“Anyone considering buying a voucher should be aware of the risks, as some well-known retailers have collapsed in recent months and further coronavirus restrictions could make it difficult to spend vouchers and gift cards.”

Retail park invests in accessibility facilities

One of Edinburgh’s largest retail parks has invested in new facilities to improve accessibility for adults with serious physical disabilities as it seeks to maintain its essential contribution to the local economy through the Covid-19 pandemic.

Fort Kinnaird has seen a steady return of visitors since non-essential shops were permitted to open at the end of June and has been working to ensure a safe environment for shoppers.

The site has recently opened a Changing Places adult toilet to help people with physical disabilities such as spinal injuries, muscular dystrophy and multiple sclerosis who often need extra equipment and space to allow them to use the toilets safely and comfortably.

There are approximately 2,000 people employed by the various retailers, leisure facilities and food & beverage outlets at Fort Kinnaird, with the site estimated to contribute around £53m (GVA) to the Edinburgh economy.

Local MSP Sarah Boyack visited Fort Kinnaird last week and was given an update on how retailers are opening in a responsible way and what safety protocols are in place. 

She also viewed the new Changing Places facilities and learn how they are helping improve accessibility. Fort Kinnaird already offers a Shopmobility service which provides powered scooters and manual wheelchairs to visitors and sensory backpacks for shoppers with autism or sensory difficulties.

Liam Smith, centre director for Fort Kinnaird, said: “Obviously the lockdown has been very hard on the retail sector but we had essential retailers open throughout and since June have steadily seen the rest of the site open up.  The measures we have in place around the park have reassured visitors and created a foundation for future success.

“Making the site accessible and welcoming for all is a key part of creating that welcoming atmosphere at Fort Kinnaird and to ensure we can continue to play a key part in supporting the Edinburgh economy.”

Sarah Boyack MSP said: “Scottish retail has been hit hard in recent months, so it is encouraging to see outlets such as Fort Kinnaird work hard to support businesses, enabling people to shop safely as we come out of lockdown and ensuring accessibility for as many shoppers as possible.

“The coming weeks will be crucial to the survival of many businesses and, as local employers, Fort Kinnaird will continue to serve a vital role in Edinburgh’s economic recovery.”

DISCOUNTS FOR STUDENTS

Fort Kinnaird has launched a fortnight of student discounts, running from the 21st September to the 4th October, helping students to shop and dine while saving up to 30% off their favourite brands.

This year’s student shopping event is back with a twist, as Fort Kinnaird has adapted its usual one-night annual event to run over two weeks, helping students make the most of some great deals over a longer period of time and in a safe way.

Students will see lots of discounts up for grabs across fashion and beauty as well as the centre’s restaurants, including H&M, Office, Topshop, and more.

Here’s some of the great student discounts on offer*:

•                     H&M – 20% off

•                     New Look – 20% off

•                     Office – 20% off

•                     Accessorize – 20% off

•                     Frankie & Benny’s – 20% off

•                     Elegance Beauty – 10% off all treatments

•                     Topshop, Topman – 20% off

•                     Dorothy Perkins (within Outfit) – 20% off

•                     Typo – 10% off

•                     Pizza Express – 30% off

•                     Wagamama – BYOB Student Sundays (20th September – 18th October)

For the full list of student offers at Fort Kinnaird, please visit the website: https://www.fortkinnaird.com/offers?field_offer_type_tid=86

* Terms and conditions apply with each offer, please check with individual stores for more details.

If you’d like to keep up to date with everything that’s going on at Fort Kinnaird, including all of the latest offers and events, visit www.fortkinnaird.com, or find us on Facebook or Twitter.  

7000 jobs to go at M & S

Marks and Spencer announces 7000 job cuts over next three months:

We are today announcing important proposals to further streamline the business both at stores and management level.

As previously outlined Clothing & Home trading in the stores remains well below last year, with online and home delivery strong.  It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change.

We have also learnt that we can work more flexibly and productively with more colleagues multi-tasking and transitioning between Food and Clothing & Home. The deployment of our leading store technology package developed in partnership with Microsoft has also enabled us to reduce layers of management and overheads in the support office.

As a result we are today embarking on a multi-level consultation programme which we anticipate will result in a reduction of c. 7,000 roles over the next 3 months. These will include departures in our central support centre, in regional management, and in our UK stores, reflecting the fact that the change has been felt throughout the business.

We expect a significant proportion will be through voluntary departures and early retirement. In line with our longstanding value of treating our people well, we will now begin an extensive programme of communication with colleagues.   

Concurrently we expect to create a number of new jobs as we invest in online fulfilment and the new ambient food warehouse and reshape our store portfolio over the course of the year. 

The cost of the programme including redundancies will be reflected in a significant adjusting item to be included in the group’s half-year results.  The streamlining programme is an important step in delivering on our cost savings programme and ensuring we emerge from the crisis with a lower cost base and a stronger more resilient business. 

Chief Executive Steve Rowe commented: “In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever.

Three months on and our Never the Same Again programme is progressing; albeit the outlook is uncertain and we remain cautious. As part of our Never The Same Again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.

These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”

Group revenue: constant currency

% change to LY19 weeks to 8 August 201
13 weeks to 8  August 201

8 weeks to 8 August 201
Clothing & Home -49.5-38.5-29.9
Food-1.12.52.5
International-31.9-24.6-19.9
Group-19.2-13.2-10.0
Clothing & Home.com32.042.239.2
 M&S.com38.946.940.7

Discounts now up to 70% OFF at Laura Ashley Edinburgh closing down sale

New discounts have been unveiled at the Laura Ashley closing down sale in Edinburgh, with all fabric and wallpaper 70% off, plus all womenswear and fashion accessories 60% off.

Snap up a homeware bargain with 60% off ready-made curtains and 50% off furniture, bedding, lighting and rugs.  Everything in the store is reduced in all departments and everything must go!

All Laura Ashley stores are ‘COVID secure’ and adhere to a strict policy of social distancing with a limited number of shoppers allowed in-store at any time. Card payments are encouraged.

Laura Ashley began in the 1950s, quickly becoming famous for its unique printed fabrics.  Over time, the brand grew to become the household name of today, synonymous with quality fashion, interiors and home furnishings. 

Laura Ashley stores will continue to trade until further notice. 

A spokesman for Laura Ashley said, “There are some amazing bargains to be found in-store, especially with these new discounts. Popular items are selling fast and customers are advised to take advantage of these discounts while stock lasts.”