Tesco to remove centralised bakery operation as part of shake-up
Tesco is phasing out its centralised bakery operation as part of shake-up which will also see it install new in-store bakeries (ISB) in around 100 Express stores nationwide.
“Our priority is always to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business,”
The retailer noted the move will help it stay ahead in what remains a highly competitive market, with the increased efficiency enabling it to continue investing in value, quality, and service for customers.
Around 380 roles are to be removed at Tesco as part of its latest restructuring, which also includes updates to some of its replenishment schedules and additional investment in its F&F Clothing departments in a number of stores. It has yet to confirm specific details on how the ISB offering will be produced across its estate moving forward as well as how many of the job losses relate to bakery.
However, Tesco said it has already spoken to a small number of colleagues about the proposed changes. “Our priority is always to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business,” commented CEO Ashwin Prasad. “Today we have around 1,500 vacancies across retail and distribution.”
The retailer previously announced a change to its ISB model just under a year ago, which also involved job cuts along with the introduction of finishing in store for the likes of baguettes, white bread, multipack rolls, Finest signature bakes, and sweet treats. The company continues to operate a mix of scratch baking and bake-off across its ISB estate having axed scratch baking at 58 stores in 2020 whilst reducing it at more than 200 other locations.
To allow for baking in space-challenged stores, such as its Express sites, Tesco rolled out a ‘super lean’ ISB operation in 2023. This combines an oven, table, rack and trays into a single specially developed unit that is just 1.05 metres wide and 0.85 metres deep.
It has since trialled another ISB model, named ‘bake on the shop floor’, that incorporates an oven, cooling rack, loose product display cassettes, and packed product shelving into just over one square metre of shop floor space.
Prasad also revealed that Tesco is to begin consultation in the coming weeks on the closure of its Hinckley Distribution Centre (DC), following plans announced last year to invest in a new DC in the same area. The new site is larger, more energy-efficient, and equipped with the latest technology and improved facilities, noted the CEO, with all staff to be offered a role there.
