Tesco is set to close some of its stores one hour earlier in a move it said would make the outlets more “efficient” and “simpler”.
The UK’s largest supermarket is understood to be trialling shorter opening hours in some Tesco Express branches, which will close at 10pm rather than the current 11pm. Employees have been told the trial is taking place in some of Tesco’s least busy stores.
It comes as Tesco chief executive Ken Murphy said last month that the company is looking to cut £500 million from its overheads to “help offset new operating cost inflation”, partly due to recent tax hikes by chancellor Rachel Reeves, which came into effect in April.
The company warned of price rises and inflation as a result of the government’s increase in employer national insurance contributions (NICs) late last year.
A spokesperson for the supermarket said it is trialling “some tweaks” to their operational routine to make things “simpler” for its employees and to make sure shops are being run “in the most efficient way”.
It is understood Tesco will not be making redundancies as a result of these changes, but some may be required to move to other stores.
However, Usdaw, the union that represents Tesco workers, has said it has not agreed to this change.
Daniel Adams, Usdaw national officer, said: “Usdaw has not agreed this change and we will be monitoring the trials closely to assess the impact on our members.
“The union has repeatedly raised issues with the business around the risks of low staffing and retain significant concerns around how this trial will work.
“While we have been assured by the company that they do not anticipate any redundancies from this process, we are aware it may involve staff transferring to other stores.
“That in itself can cause problems with travel, caring commitments and shift patterns; so we will be fully supporting our members affected by this trial.”
A Tesco spokesperson added: “Our Express format is a strong and growing business, providing great value and convenience for customers on their doorstep.
“These changes aren’t visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell.”
When previously asked if the savings drive could mean cutting jobs, Mr Murphy said: “We never rule that out, but at the same time, we have a track record of managing it very well.”
Nonetheless, Tesco also reported bumper sales for the most recent financial year, up 3.5 per cent to £63.6 billion.
The rate of employer NICs increased from 13.8 per cent to 15 per cent in April. At the same time, the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.
The British Retail Consortium (BRC) said changes to NICs and wages will cost retailers another £5 billion over the next year.
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