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Asda announce over 1000 redundancies

By Fiona Ness on Tue 08 July 2014 in Topical

Last week Asda confirmed plans to restructure, resulting in 1,360 redundancies and over 5,000 members of the team moving into online focused roles. All with the aim to cut over £1 billion in costs.

Although we have seen other supermarkets such as Morissons and Tesco announce plans to restructure, Asda are thought to be making the biggest changes. They are reportedly 18 months ahead of their competitors and have a solid plan to take the online supermarket world by storm.

“Every supermarket must adapt to the intense changes in UK retailing or they will get left behind. We spotted this nearly two years ago, responding with a new strategy and taking time to thoroughly examine our structures” Andy Clarke, Asda’s chief executive

Cost cutting is a priority for Asda. However their online business has become far more complicated and far more integrated with their in-store experience – primarily driven by a rise in customers opting for click and collect. Clearly an area of investment for them, Asda are redeploying staff into online focused roles.

What does this mean for you?

Asda might be a huge company, with an even bigger parent company, but believe it or not your SME isn’t so different.

It’s no secret that the top supermarkets have been struggling recently, and to us the problem is obvious. They are failing to offer their customers what they want, where they want it – online.

86% of B2Bs are currently selling online. The problem is, if you’re not one of them, the likelihood is that your competitors are, and if you’re competitors are online, your customers are shopping online.

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