B&Q has placed more than 670 roles across its business into consultation as part of streamlining efforts.
According to trade publication Retail Week, the business is seeking to reduce the number of deputy manager, trading manager, and team leader positions across its 318 stores and head office.
If the DIY retailer’s plans are approved, 672 roles will be cut, mainly across its stores, while a further 65 will be from its head office.
The report noted that B&Q is consulting with workers impacted by the cuts and is set to offer alternative roles or support packages to staff who cannot be provided with a new position.
B&Q CEO Graham Bell is quoted as saying: “Over the last few years, we’ve evolved at pace to ensure that we can give our customers the very best retail experience. We’ve physically changed our operations so that our stores, apps and online are fully integrated, helping home improvers by giving them more choice, speed and convenience. And we need to keep changing.
“In this dynamic world of retail, we are very much in control of shaping our future. Today’s news would ensure that we continue to evolve and grow market share, by prioritising our resources where we can help our customers most.”
He continued: “The proposals shared with colleagues today – to simplify our retail leadership structure and reallocate time to customer service roles on the shop floor, and to change some head office teams – have meant some difficult choices.
“They impact our dedicated colleagues in retail leadership across all of our stores and in head office functions, and we’ll be doing everything we can to support them.
“Ultimately, it is about setting our business up in the right way so that our colleagues are equipped to give our customers consistently exceptional customer service now and in the future, so that we give home improvers the choice and convenience they deserve.”
B&Q saw its sales increase by 0.4% on a like-for-like basis during its second quarter, which ended on 30 April, supported by a strong performance in e-commerce and the trade segment.
The business experienced improved volume trends in its core categories, particularly tools & hardware, as well as building & joinery. However, this was partially offset by weak sales performance in ‘big-ticket’ categories as consumers remained reluctant to fork out on expensive products amid cost-of-living pressures.
NamNews Implications:
- When demand falls, retailers have to cut to fit profitable opportunity.
- Meaning reduction in staff numbers or sale of outlets.
- Each of which reduces the investment appeal of the retailer to branded suppliers.
- Lower staff numbers can mean lower service level.
- Whilst fewer outlets can mean less access to markets.
- What really matters is perceived impact on shopper loyalty.
- Ask again in six months…
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