UK – Tesco has reviewed its bakery operations in large stores as part of the UK retailer’s strategy to meet the evolving customer demands.
The retailer says that over recent years, it has seen a big shift in customer tastes and preferences highlighting that customers are buying fewer traditional loaves of bread and are increasingly looking for a wider range of options, with sales of wraps, bagels and flatbreads growing
To better position its bakery business, Tesco has announced that it will alter the space and range in large in-store bakeries to cater to changing customer demand, including the increase in alternatives to traditional loaves.
The retailer will continue to offer scratch baking in 257 stores but is making some changes to other bakeries.
As part of these changes, Tesco will be converting the bakery section in 58 stores to full bake-off where all products are delivered pre-prepared, then baked and finished in store.
However, the retailer said that in 201 stores, the most popular products will continue to be baked from scratch with other products moving to part-baked.
Tesco has also announced that it will be improving the customer experience by investing and continuing to roll out new, up-to-date fixtures as well as growing our regional bakery ranges in partnership with small local suppliers.
The British retail giant said that the review will ensure its bakery operations are relevant to the way the market and customers have evolved. The changes are expected to take effect starting May 2020.
“We need to adapt to changing customer demand and tastes for bakery products so that we continue to offer customers a market-leading bakery range in store,” Jason Tarry, UK & ROI CEO, said.
However, the company noted that due to some stores doing less scratch baking, as well as the simplified routines these changes will bring there are 1,816 bakery colleagues being put at risk of redundancy.
“We know this will be very difficult for colleagues who are impacted, and our priority is to support them through this process. We hope that many will choose to stay with us in alternative roles,” Tarry said.