As many as 3,000 jobs could be at risk as Tesco embarks on its latest mission to cut costs by slashing the number of hours its stores are open. The retail giant is shifting overnight shelf-stacking to daytime in 69 stores and ending round-the-clock opening in eight stores (The Daily Mail).
The UK’s biggest retailer said the consultation process with night workers in the 69 impacted stores would begin this summer. Tesco expects the majority of staff affected to stay on, though night workers, who are paid more for working unsociable hours, could experience a drop in earnings if they do. (The Guardian)
Meanwhile, Richard Buxton, chief executive of Old Mutual Global Investors, has given his support to Tesco’s proposed acquisition of Booker and has rejected suggestions that it could distract management from the core business of turning around the supermarket group. (The Times £)
The collapse of the pound after the Brexit vote has weighed on the American owner of the Boots pharmacy chain, which reported an unexpected fall in quarterly sales. Walgreens Boots Alliance said yesterday that government cuts to pharmacy funding in Britain had delivered a further hit to sales at its international retail pharmacy division, which is dominated by more than 2,500 Boots outlets in Britain (The Times £). The fall in sterling and a reduction in pharmacy funding saw the owner of Boots post mixed results (The Daily Mail). Walgreens Boots Alliance posted a dip in quarterly revenues, which came in slightly short of Wall Street expectations, as a strong dollar dented its international business (The Financial Times £)
Doritos, Peperami and Coco Pops are the latest products to fall victim to shrinkflation as rising costs hit food producers. (The Guardian)
JAB, the investment company backed by Germany’s billionaire Reimann family, has added US bakery and sandwich chain Panera Bread to its fast-growing US food and beverages empire, after agreeing to acquire the chain for $7.5bn. (The Financial Times £)
The FT’s Lex column writes that Panera should tuck comfortably into a JAB portfolio that includes Krispy Kreme Doughnuts and Peet’s Coffee & Tea. However, it warns: “The group is wading into the crowded market for catering and delivery. Venture capitalists have been burning money here for years with little result. A crunch is coming. Panera will be served better by the crunches delivered by top-selling new sandwiches such as the Chipotle Chicken Avocado Melt. Businesses need to innovate offline too.” (The Financial Times £)
Deliveroo is serving up 1,000 new jobs at 30 new delivery-only kitchens across the UK. The tech firm said the project would allow it to team up with more than 200 restaurants and let businesses target new areas without setting up a high street site (The Daily Mail). The technology firm says its sees a gap in the market for a delivery-only restaurant platform that keeps a lid on costs (Sky News)
Cereal Killer founders Alan and Gary Keery have given an interview to The Guardian, telling the paper how they didn’t expect their cafe to spark a protest but, undeterred, they’ve taken the brand from London to the Middle East. (The Guardian)
Monsanto, the world’s biggest seed supplier, said that fiscal second quarter earnings topped analyst estimates and said its results were boosted in part by strong profit growth from its corn and soyabean business and the sale of its seed treating business. (The Financial Times £)
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