Today in retail: Have Tesco's job cuts gone too deep?

The cuts, the grocery giant said, represent the “significant next step” in its ongoing turnaround efforts under boss Dave Lewis.

Having nursed the grocer back to growth since joining in September 2014, positive momentum is on Lewis’ side.

But, landing just a few days after the news that Tesco is closing its call centre in Cardiff with the loss of around 1,100 roles, it’s likely to leave a bitter taste in some people’s mouth.

The radical moves made by Tesco this last week echo the British Retail Consortium’s (BRC) sentiment of ‘fewer, better retail jobs’ – particularly as Lewis plans to give all store staff a 10.5% pay rise over the next two years.

But today additional cuts certainly beg the question: How much fat can Tesco afford to trim before it starts to eat into muscle?

In brighter news today, Dixons Carphone shrugged off the Brexit blues with a glowing set of full-year results, indicating the electrials giant is well positioned to flourish in the long term.

Boss Seb James proudly reported a 10% jump in pre-tax profit to more than half a billion and, after the results, shared his views on battling Brexit and taking the fight to Amazon.

Quote of the day

“We have about 4,000 EU workers in our business. To my mind these people are family and I will do everything in my power, and fight like a stag, to make sure they feel as comfortable and secure as possible where they are.”

– Dixons Carphone group chief executive Seb James commenting on Brexit after today’s results

Today in numbers

1

Ikea’s position on Retail Week’s ranking of the best retailers to work for in the UK

4%

Dixons Carphone’s UK and Ireland like-for-like sales growth

Tomorrow’s agenda

Tomorrow marks the 10-year anniversary of the iPhone and we’ll examine the impact it has had on retail. The fourth Bunnings Warehouse store also opens, this time in Milton Keynes. 

Emily Hardy, senior reporter