In a move that reflects broader pressures on the retail sector, Tesco has launched a trial to reduce opening hours at selected Express branches. The decision comes amid rising operational costs and evolving workforce dynamics across the UK’s grocery landscape.
The trial also arrives as businesses face increasing strain from tax reforms and inflation-related expenses. While the initiative may streamline operations, it has prompted questions around staff welfare and consultation practices in one of the country’s most influential retailers.
Tesco Begins Trial to Shorten Hours in Select Stores
Tesco has begun a limited trial to close a number of its Express outlets one hour earlier each evening, adjusting the closing time from 11pm to 10pm, according to The Independent. The company says the initiative is part of an effort to streamline operations and improve efficiency.
The trial is being rolled out in a selection of the retailer’s least frequented locations, and is not expected to involve job losses. However, Usdaw, the union representing retail staff, has voiced concerns over the lack of formal agreement and the implications for staff scheduling and travel.
A Cost-Saving Measure Amid Rising Operational Pressures
The shift in opening hours follows recent comments by Tesco CEO Ken Murphy, who stated that the retailer aims to cut £500 million in overheads to absorb inflationary pressures.
One key driver has been the increase in employer National Insurance contributions (NICs), which rose from 13.8% to 15% in April. Additionally, the threshold for NICs contributions was lowered from £9,100 to £5,000, placing further financial strain on employers, according to The Independent.
The British Retail Consortium (BRC) has estimated that changes to NICs and wages will cost UK retailers an additional £5 billion over the next year. Murphy has acknowledged that while job cuts are not currently planned, the company “never rules that out”.
Tesco has reported a 3.5% rise in annual sales, reaching £63.6 billion, suggesting strong consumer performance. However, the drive to reduce costs highlights the pressure that even the UK’s largest supermarket faces in maintaining margins amid shifting economic policies.
Union Raises Concerns Over Staff Impact and Consultation
While Tesco insists the change will not alter customer experience or product availability, the impact on employees remains a point of contention. According to Daniel Adams, national officer at Usdaw, the union has not agreed to the changes and is monitoring the situation closely.
Tesco stated that the trial involves only “some tweaks” and that affected employees may be relocated but not made redundant. The retailer added that its Express format remains “a strong and growing business”, and the trial aims to ensure stores are run in “the most efficient way”.
Union representatives argue that any shift in hours must involve formal consultation, particularly when there is potential for disruption to staff routines and well-being.
