Tesco is making changes to its in-store bakeries as part of a wider move to ‘simplify’ its business.
The supermarket has started speaking to employees about several proposed changes in its stores and head office, including changes to its bakery model in some locations.
Tesco currently operates a mix of scratch baking and bake-off across its in-store bakery estate (ISB) with scratch baking removed from several stores a few years ago as it looked to cater to a consumer shift away from traditional loaves.
Now, following an increase in demand for its premium Finest speciality breads range, the retailer has introduced a new finishing model for its in-store bakeries. This means a wide range of baked products are finished in-store, including baguettes, white bread, and multipack rolls, as well as a range of Finest signature bakes and sweet treats.
Items in the Tesco Finest ISB bread line-up include a Stonebaked Seeded Multigrain Bloomer, Limited Edition Wild Garlic Ciabatta, Kalamata & Halkidiki Olive Batard, and Vintage Cheddar Boule.
Scratch baking will remain in a number of stores alongside the new finishing model.
Tesco described the grocery market as ‘more competitive than ever’ and said it must work hard to ensure it can continue to offer its customers ‘unrivalled value’.
Away from bakery, Tesco is also updating the management structure in Tesco Mobile phone shops alongside other changes which altogether mean the removal of around 400 jobs.
Matthew Barnes, Tesco UK CEO said: “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.
“Our priority is to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available.”
Separately, Tesco has also begun a consultation on the closure of its Snodland Distribution Centre (DC), following the previously announced investment in a DC in Aylesford. The Aylesford site, situated three miles from the Snodland DC, is larger with new technology and improved facilities, Tesco said, adding that all colleagues at Snodland will be offered a role at the new site.
Bakery evolution
Tesco, like many of the major retailers, has evolved its ISB operation to keep up with consumer demand in an increasingly competitive marketplace – one which saw Lidl overtake it as the retailer with the largest share of in-store bakery last year.
In 2022, it unveiled a trial concept called ‘The Bakery’ which looked to make the shopping mission easier for shoppers and better showcase the products by dividing them into three sections – Tea Time Treats, Everyday Favourites, and Tesco Finest Signature Bakes.
Alongside changes to its core estate, the retailer has been rolling out a ‘super lean’ ISB operation which allows it to bake in space-challenged stores.
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