Morrisons' job cuts likely to be replicated by other grocers, brokers believe

Morrisons is restructuring store operations in order to cut the number of management tiers and increase focus on shoppers amid tough trading conditions as discounters such as Aldi and Lidl grow in power.

The shift in shopping habits has also affected other big four grocers and broker Shore Capital believes there may be further job losses to come.

Shore analysts Clive Black and Darren Shirley said: “Morrisons’ initiative on labour costs is not the first within the supermarket industry and, we believe, it will not be the last.”

They said: “Whilst in no way seeking to be a destabilising force elsewhere, we believe that Sainsbury’s and Tesco will also announce in due course material productivity programmes involving labour shedding.

“Indeed, in a market suffering sustained weak demand and gross margin pressure, cutting the cost cloth accordingly is the key lever available to management to support margins and profits.”

No comment was immediately available from Sainsbury’s on the Shore note.

Last month Retail Week revealed that Asda was putting 4,100 jobs into consultation as it adapted to the rise of multichannel shopping.

Tesco undertook a similar initiative, although a smaller number of roles was affected. Tesco is also piloting a scheme that would mean the scrapping of team leader roles in various types of store.