Asda has announced that it is cutting hundreds of jobs mainly in its head office, citing a challenging operating environment and changing customer behaviour.
The grocery giant, owned by US heavyweight Walmart, said on Wednesday that around 300 jobs would be slashed at its head office in Leeds as well as in Leicester.
“In recent years, the competitive landscape in retail has changed significantly and Asda has been no different,” a spokesperson for the company said.
“Our stores have adapted the way they operate to meet the changing needs of our customers, and our home offices must also adapt how they operate to support our stores.”
The cull comes on the back of a set of lacklustre results.
In early August, Asda reported that sales had fallen 5.7 per cent in 2016 over the previous year. Profits tumbled 19 per cent.
The chain’s been hit hardest by the rise of discount rivals Aldi and Lidl, and has also failed to make headway into the super-competitive convenience sector, which has grown strongly as large-store sales have stalled.
The supermarket chain has now reported 11 consecutive quarterly falls in sales.
Despite this, it remains the second biggest grocery retailer in the UK by market share, beaten only by Sainsbury’s. In 2016, Asda had an 11.7 per cent share of the market, compared to Sainsbury’s 12.4 per cent.