Tesco share price: Grocer set to axe 1,700 deputy managers

on Feb 27, 2017
Updated: Oct 21, 2019
Listen

Tesco (LON:TSCO) is set to cut thousands of deputy manager positions in its convenience stores, industry magazine Retail Week has revealed. The move comes as Britain’s biggest grocer shakes up the management structure across its Express estate.

Tesco’s share price has fallen into negative territory in today’s session, having shed 0.42 percent to 189.20p as of 13:18 GMT. The stock is underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.01 percent higher at 7,244.19 points. The group’s shares have gained some three percent over the past year, and are down by more than eight percent in the year-to-date.

Retail Week reported this morning that Tesco was stripping out around 1,700 deputy manager roles in its Express stores across the country. The supermarket will instead create 3,300 shift leader roles, although these will demand a lower salary than the deputy manager position.
“We appreciate that these changes will impact our deputy manager colleagues, and will do everything we can to support them throughout this period,” a spokesman for the company told the industry magazine. Tesco has further pointed out that all affected staff will be invited to apply for the new shift leader roles, take redundancy or, in some cases, take up a deputy manager role elsewhere in the business.

The move comes after the blue-chip grocer announced earlier this year that it had inked a deal to buy Londis owner Booker Group (LON:BOK), with the move marking another step in the group’s recovery following an accounting scandal back in 2014.
The 17 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 200.00p, with a high estimate of 260.00p and a low estimate of 150.00p. As of February 25, the consensus forecast amongst 22 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.
As of 13:38 GMT, Monday, 27 February, Tesco PLC share price is 189.04p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Food & Beverage Retail Stock Market