Tesco is set to close more than 100 in-store bakeries affecting 600 staff.
The supermarket chain will open a new bakery in Weybridge, Surrey producing fresh bread and bakery products, as part of its growing Euphorium project.
The move will take place across branches in south-west London, Surrey and Berkshire.
Current bakery staff at the affected stores will be given options to relocate.
However, Tesco has revealed up to 450 jobs will be created at the new site, and 1,000 in total, with positions available as more Euphorium concessions are introduced.
A spokesperson for Tesco said: “We already offer Euphorium bakery products in several of our stores in and around London and feedback from customers has been really positive. As part of our programme of creating compelling and enjoyable retail destinations for our customers, we’re going to be introducing the Euphorium range of artisan breads and cakes to more of our stores in the coming months.”
“This programme is creating 1,000 roles, which includes opportunities for our 600 current bakery colleagues to work in the new concessions in stores or at Weybridge.”
Speaking to British Baker last month, Steven Dresser, director of analysis firm Grocery Insight, said the Euphorium expansion could be the beginning of the end of in-store, scratch bakeries as we know them.
Costly to run because of the staffing involved, the ISB has been a drain on Tesco’s margins for years.
A source also told British Baker: “As soon as [Tesco] bought into a bakery operation, the writing was arguably on the wall [for its ISB model].”