The John Lewis Partnership plans to cut 1,000 management jobs at its Waitrose supermarkets and John Lewis department stores as it strives to meet its cost cutting target, the retailer said on Wednesday.
The employee-owned group said a plan to simplify management structures would lead to the roles becoming redundant and with 34 John Lewis stores and 331 Waitrose supermarkets in total, the cuts would average 2.7 management roles per store.
The latest cuts follow a March announcement about the permanent closure of eight stores, hitting 1,465 jobs, and the closure of eight stores in July last year affecting 1,300 positions.
John Lewis said it would try to find new roles for affected employees, or partners as it calls them, who wanted to stay in the business and also try to minimise compulsory redundancies.
In March, the partnership said the "economic earthquake" of the pandemic had sent it to a £517 million annual loss.
While Waitrose in common with its supermarket rivals has seen both sales and costs increase during the crisis, sales at its department store chain have been hammered by multiple lockdowns which forced outlets to close.
A five-year recovery plan, detailed by Chairman Sharon White in October, requires the group to reduce costs by £300m per year by 2022 to free up cash to invest in the business.
It is investing about £800m pounds this year.
"We have announced to our partners our intention to simplify our management structures in Waitrose and John Lewis stores, which will allow us to reinvest in what matters most to our customers," the partnership said in a statement.
The UK Vaping Industry Association said they are ‘disappointed’ that no representatives for the sector, nor for the millions of adults who have quit smoking through vaping, were invited to speak at the committee hearings for the Tobacco and Vapes Bill held yesterday (7 January).
The bill is currently at the committee stage in the House of Commons. Witnesses who provided evidence in the morning session included chief medical officers for the four nations and chief executive of heath charity Action on Smoking and Health (ASH) and regional chief executives from ASH in Scotland, Wales and Northern Ireland, along with the representatives from Cancer Research UK and Asthma and Lung UK.
This was followed by a second sitting which saw evidence from public health and trading standards experts, academic experts and representatives from Royal Colleges. Inga Becker-Hansen, policy adviser – retail products at British Retail Consortium (BRC) was the only representative from the retail sector at the session.
UKVIA noted that some of the measures being considered in the bill could have consequences on the effectiveness of vaping as a quitting tool, potentially blocking smokers from making the switch or sending current adult vapers back to cigarettes or to the black market.
“The legitimate industry, which is devoted to helping adult smokers kick the habit and shares the ambition of a smoke free future, as well as the consumers, whose lives have been changed by vaping, should have had a voice in today’s session,” the industry body said.
The UKVIA is hosting an event in parliament today to put forward the industry’s views on the bill, including the potential for a retail licensing scheme – something the association has been advocating for years.
Small convenience stores are selling less tobacco, and the tobacco products they do sell are much less profitable to them than vaping products, according to new analysis from the University of Edinburgh.
Profit margins from vapes were far higher than those of tobacco products, with an average of 37.1 per cent for vape products compared to 8.5 per cent for tobacco products in September 2022. For comparison, profit margins were, on average, 21.0 per cent across all product types.
Footfall from tobacco sales has decreased by nearly 40 per cent in small retail outlets compared to less than a decade ago. In 2015, when Action on Smoking and Health (ASH) conducted a similar analysis, 21 per cent of transactions included tobacco, in 2022 University of Edinburgh researchers found 12.8 per cent included tobacco.
Meanwhile, the average weekly number of transactions per store which included vapes rose sharply from 10 in 2019 to 93 in 2022 – a nine-fold increase in three years. Although there were considerably fewer transactions including vapes than tobacco, gross profits per store from vape sales were equivalent to 73.4 per cent of the value of tobacco profits, as a consequence of vapes’ high profit margins.
The analysis highlights the potential benefits to small retailers of existing smokers switching to vaping and shows that tobacco sales are becoming increasingly unimportant for business.
“Our analysis shows that convenience stores now make only 10 per cent of their profits from tobacco and if their customers were buying products other than tobacco stores would benefit from this. Sometimes business and public health interests align – we would all be better off if fewer people bought tobacco,” Professor Jamie Pearce, professor of health geography at the University of Edinburgh, said.
ASH said the profitability of vapes underscores the need for a retail licensing scheme to crack down on irresponsible sellers and protect legitimate retailers.
“Tobacco is yesterday’s product. The reduction in sales benefits both the nation’s health and convenience stores who make dwindling profits from selling tobacco. At the same time vape sales have surged, and this is much more profitable for retailers,” Hazel Cheeseman, chief executive of ASH, said.
“Responsible retailers who are already profiting from vapes should welcome regulations to improve the market, reduce appeal to children and drive out rogue traders.”
While vapes are a useful quitting aid for smokers and far less harmful than tobacco, they are not risk-free and there are concerns about vapes being sold to children. The new Tobacco and Vapes Bill will bring in strict new measures, including a retail licensing scheme and tough marketing restrictions.
In a separate study last year, ASH surveyed small convenience store owners to understand their views further regulations. The survey found that:
51 per cent support raising the age of sale one year every year (26 per cent oppose).
71 per cent support mandatory age verification (20 per cent oppose).
65 per cent support creating a smokefree generation (17 per cent oppose).
79 per cent support fixed penalty notices for breaches of age of sale regulations (13 per cent oppose).
The University of Edinburgh analysed data from 1,503 convenience stores using data from electronic point of sale supplied by The Retail Data Partnership. The analysis focuses upon comparison of data from the weeks 7-13 September 2019 and 7-13 September 2022.
The Scottish Grocers Federation (SGF) Go Local Programme launched on 1 December 2020, and set out to support convenience stores throughout Scotland to provide dedicated, long-term display space for locally sourced Scottish products, to drive local sales and ultimately support the economic recovery of Scotland’s’ food & drink sector from Covid-19.
The project, delivered with the support of the Scottish Government and Scotland Food & Drink, has gone from “strength to strength”, providing dedicated space for local products under the Go Local banner.
Findings in a new joint report published today (8), show a remarkable increase in Scottish products being sold over the counter in participating stores. Averaging a 44 per cent growth in sales of goods sourced from local producers. It also highlights a significant multiplier impact and boost for the local economy, with expected increases of around £169k per store per annum.
Administered by the SGF, the Go Local Programme provides individual grants for retailers to invest in developing a dedicated space for local products (£5,500 in 2024) and has a particular focus on facilitating “meet-the-buyer” events linking up local retailers with producers in their area.
“We have seen the number of people wanting to support local producers continues to grow and this independent report shows the real impact that the Go Local Programme has had in getting more and more of our fantastic local food and drink on the shelves of convenience stores, a vitally important sector,” said Rural Affairs Secretary Mairi Gougeon. “The programme is bringing real benefits to local communities, supports the economy and importantly offers more opportunities for our wonderful food and drink producers to showcase their products.”
Jamie Buchanan, Go Local Programme Director, said: “The fantastic thing about Go Local is that it is a win-win for everyone. Customers ensure they are getting only the best quality local produce and boosting the local economy at the same time. Meanwhile, producers and retailers get direct access to their local market while also improving sustainability and cutting out long-distance transport costs.
“It’s no surprise that the programme has gone from strength to strength since its launch in December 2020, and this report confirms the positive impact for participating stores. It has been great to work with both Leigh and Maria developing the report and I want to thank them, and all involved in delivering the programme these past four years.”
The in-depth report on the project has been developed by Research Fellow, Dr Maria Rybaczewska, and Professor of Retail Studies, Leigh Sparks, from the University of Stirling.
“The Go Local Programme has demonstrated that concerted action from retailers and producers to highlight and spotlight local products provides a significant and sustained growth in sales of these products and overall for the stores,” said Prof. Sparks.
“Joining the project makes a huge difference in the overall performance of local products, with the increased multiplier effect building community resilience and the focus on local producers and products reducing the carbon and environmental impacts locally and nationally.”
Scotland Food & Drink have also been instrumental in expanding the range of compliant products available through the project.
Scotland Food & Drink Programme Director, Amanda Brown commented: “The Go Local Programme is a great example of how selling and promoting locally sourced Scottish products can build sales both for the retailer but also the producers. Research tells us that Scottish consumers want to buy more Scottish brands and products, and the project is helping make this happen.”
The Portman Group’s seventh annual survey in partnership with YouGov reveals more people are drinking low and no alcohol alternatives than ever before, showing the UK is drinking more moderately than ever.
The results show that well over a third (38 per cent) of UK drinkers are now consuming low and no alcohol alternatives semi-regularly (12 per cent regularly and 26 per cent occasionally) – compared to 35 per cent in 2023 and 29 per cent in 2022, with a notable increase in regular consumption from eight per cent in 2023 to 12 per cent in 2024.
Young adults continue to drive the trend as the biggest consumers of low and no alcohol alternatives, with close to half (46 per cent) of 25-34 year olds surveyed considering themselves either an occasional or regular drinker of alcohol alternatives, compared to 37 per cent in 2023. Whilst 40 per cent of 18-24 year olds also drink these products semi-regularly.
Trends show that the younger generation also continue to be the most sober age group overall, with 39 per cent of 18-24 year olds not drinking alcohol at all.
The results continue to highlight the positive impact of low and no alcohol alternatives in helping people to moderate their drinking, with almost a quarter (24 per cent) of current alcohol drinkers stating that their weekly consumption has fallen due to low and no alcohol products, up from 23 per cent in 2023 and 21 per cent in 2022.
The survey also highlights an increasingly health-conscious UK consumer, with 29 per cent of low and no drinkers citing collective “health and medical” concerns as a key reason for choosing an alcohol alternative – an increase of almost a third (32 per cent) when compared to 2021 (22 per cent).
Not only are UK drinkers increasingly using low and no alcohol alternatives as a tool with which to moderate their drinking, but their rise in popularity is playing an important role in helping to tackle wider alcohol harms such as drink driving.
For the seventh year in a row, being able to drive home from social events is the number one reason cited by low and no drinkers for choosing an alcohol alternative, with over a quarter (28 per cent) stating they will most commonly drink low and no alternatives in situations where they are unable to have a regular strength alcoholic drink such as when they are driving. This is especially important as pubs and bars remain the most popular locations for adults to drink low and no alternatives.
While our research continues to tell a positive story of how low and no products are becoming increasingly normalised in everyday life, almost a quarter of adults (24 per cent) would still like to see more low and no options available on tap in pubs to further encourage them to drink. They also want to see greater use of price promotions (30 per cent) and greater availability of low and no products in non-traditional hospitality spaces (26 per cent) such as nightclubs, theatres, cinemas and live music and event venues.
“It’s fantastic to see low and no alternatives continuing to soar in popularity, while helping to encourage more mindful and moderate consumption among UK alcohol drinkers,” said Matt Lambert, Portman Group CEO. “We welcome the drinks and hospitality industry continuing to work together to increase choice, availability and visibility of low and no alcohol alternatives, and we continue to urge the UK government to provide us with the outcome of the recent consultation on low alcohol descriptors which will further facilitate growth of the UK low and no alcohol market.”
Mevalco, one of the UK’s leading importer and wholesaler of Spanish fine foods, has reported 6 per cent growth in 2024, despite tough trading conditions and increased costs associated with import and post Brexit tariffs and processes.
With turnover now approaching £10 million, Mevalco has returned consistent growth for the past 10 years. The company now has a strong presence in retail and fine dining markets, as well as the creation of specialist retail signature ranges, working closely with high profile chefs and the company’s unique cohort of suppliers in Spain.
David Menendez, managing director, said 2024 was a tough year for specialist retailers as the rising cost of living and inflationary pressures impacted on business’s bottom line.
“There is no question that 2024 has been a tough year and 2025 is looking equally challenging with the new national insurance and minimum wage thresholds set to further impact on retail markets,” Menendez said.
“However, we have been pleased with the results of 2024 which has been driven by offering value and innovation in our product ranges and investing in our people. We have brought more than 80 new products to market and through working closely with our valued Spanish suppliers have looked to help our customers re-energise and refresh their offer at affordable prices in order to continue to attract the consumer.
“By doing so, we have engaged with more businesses and driven growth through volume in the bottom line. Consumers want value and they want quality – both of which we are pleased to supply in abundance”.
Mevalco offers an extraordinary service that brings new products and meat cuts to market from Spain, supported by training and workshops to help its customers optimise the opportunity for fresh innovation and inspiration.
From its base in Bristol, it supplies establishments right across the UK and is seeing a growing foothold as Spanish produce increases in popularity and demand.