U.K.’s Asda to Cut 1,400 Jobs
Leeds, England, The Wal-Mart-owned British supermarket group Asda today said it plans to cut 200 management jobs and up to 1,200 managerial store positions in a bid to challenge its rival, Tesco PLC. Asda has been engaged in a price war with Britian’s No. 1 chain Tesco for the past year, and the job cuts are part of a restructuring of its executive lineup and headquarters. Asda also brought back two directors from other posts. The supermarket group said the managerial changes would allow the company to better invest in frontline customer service. As Britian’s No. 2 supermarket chain, Asda employs 140,000 people across the country, so the planned cuts could affect up to 1% of the work force. The company said it hopes to reassign 400 of the 1,200 stores positions to other posts.
CEO Andy Bond, who took the reins earlier this year, said, “I’m simply not satisfied with this year’s average performance—our natural home is out-performance and today’s changes put in place the teams that will re-ignite our business over the next 12 to 18 months.”
Organized Living to Dispose Leases
Great Neck, N.Y., Keen Realty has been retained to market and dispose of Organized Living’s retail leasehold interests throughout the United States. The storage-and-organization products retailer filed for Chapter 11 bankruptcy protection eight weeks ago.
Sites to be disposed of range from 17,000 sq. ft. to 26,000 sq. ft., mostly in shopping centers. Keen’s marketing efforts will culminate in an auction on July 25, with a deadline of July 21 for bid submission.
Wal-Mart Expands in Brazil
Sao Paulo, Brazil, Wal-Mart Stores, Brazil’s third-largest supermarket chain, opened its second supercenter in Sao Paulo in the last 12 months.. In all, the chain operates eight supercenters in Sao Paulo, the nation’s largest city, and 16 in the larger metropolitan area.