Tesco to axe 15,000 jobs and close deli counters, while bakeries will be scaled back in purge on costs at 732 stores. Tesco (TSCO) is set to axe about 15,000 jobs and close meat, fish and delicatessen counters in one of the biggest shop floor culls of boss Dave Lewis’s reign. The chief executive of the Britain’s biggest supermarket will also overhaul the in-store bakeries – where frozen instead of fresh dough will be used, cutting the need for skilled bakers – and replace staff canteens with vending machines. The plans are expected to affect the majority of Tesco’s 732 larger stores. A typical Tesco Extra has five fish mongers, five butchers and six deli and cheese counter workers. The Mail on Sunday understands that counters in a handful of the biggest Extra stores will open on Thursdays to Sundays – but others face closure or being scaled back dramatically. Industry sources estimated that the move would result in the loss of as many as 15,000 staff and warned that the supermarket could lose regular customers who use the deli counter. One senior industry source said: ‘Dave Lewis’s attitude seems to be “if in doubt, just close it” – but for elderly customers, or those on a budget, using the counters for a few slices of ham, those aren’t the days they do their shopping.’
You have to wonder just what’s going to light the blue touch paper under the shares of Mporium Group (MPM), which have almost halved in value in the past 12 months. The digital marketing firm yesterday unveiled a deal with a financial technology group. The tie-up will deliver sales and earnings ‘several orders of magnitude greater than [those] achieved by the company to date’. The net impact? A 2.5%, or 0.12p, fall in the share price to 4.95p, valuing the business at £31million.
Mike Ashley demands six months of free rent from HMV’s landlords if he takes over collapsed music chain. Mike Ashley is believed to be demanding that HMV’s landlords give him six months of free rent if he takes over the collapsed music chain. The retail tycoon wants the rent holiday as part of his deal to take over the company. If he is successful, it will add another 125 stores to his empire. Ashley was one of a number of bidders to put in a formal offer with KPMG, which is in charge of HMV’s administration, before a deadline of January 15. The 54-year-old founder has already bought Evans Cycles and House of Fraser in cut-price deals in the past six months. Speculation has been mounting that he is plotting a merger between HMV and Game Digital (GMD), in which he has a stake of more than 25%.
M&S turns to internet bloggers to boost sales: But will shoes designed by ‘influencers’ do the trick? Marks & Spencer Group (MKS) has teamed up with a group of ‘influencers’ on social media in a desperate bid to arrest declining sales. The High Street stalwart is working with seven Instagram bloggers to promote its clothes as it seeks to attract younger customers – and it is also launching a range of shoes designed by the women. The shoes will go on sale online next Tuesday, priced between £35 and £49.50. The collaboration is the latest attempt by M&S chairman Archie Norman and chief executive Steve Rowe to boost sales at the struggling store. M&S has already joined forces with television presenter Holly Willoughby, who selects a range of clothes for a Holly’s Must-Haves collection.
Vodafone halts roll-out of Chinese-made Huawei 5G equipment amid spying fears. Vodafone Group (VOD) has stopped the roll-out of some Huawei equipment in its networks in Europe amid fears the Chinese company could use it for spying. As the British mobile giant updated investors on its last three months of trading, which saw revenue slip, chief executive Nick Read said he had decided to ‘pause’ using further Huawei kit in the critical parts of Vodafone’s telephone networks. The decision was due to the ‘noise’ around Huawei rather than any particular issues, Read said, noting Vodafone had been speaking to governments across Europe about their concerns.
PUNT OF THE WEEK: Can luxury furnishings group Walker Greenbank (WGB) bounce back from disaster? Its brands now include Sanderson, Morris & Co, Harlequin, Zoffany, Scion, Anthology, Clarke & Clarke and Studio G, and it manufactures nearly all of its products in its own British factories. A flooded factory, a fire at another facility and a profit warning have sunk Walker’s share price over the past three years. Chief executive John Sachs left in October. A replacement has yet to be found. Russ Mould, investment director at AJ Bell, says Walker can point to an 8 per cent profit margin – and just £5.2million in debt. Mould says: ‘Turnaround stories often take longer to happen than you think, and, in Walker Greenbank’s case, there is a danger that trading in the UK remains subdued and the international sales drive fails to compensate.’
Midas Share Tips: Hate queuing for the doctor? Invest in this tech firm and we’ll all feel better. Midas Vverdict. Blue Prism Group (PRSM) is loss-making and likely to remain so for some time. Against this however, the robotic process automation market is expanding at a rate of knots and experts believe it will be valued at more than £2billion by 2021. Blue Prism is at the forefront of the field, widely respected and growing fast. At £13.44, the shares are a buy, particularly for adventurous investors keen to support a British firm punching above its weight in the IT world.
Midas Update: The prognosis is healthy as medical firms join forces. Mida’s verdict. Midas recommended Primary Health Properties (PHP) in 2008, when the shares were £2.80. The stock was divided in four a few years later so the 2008 price is equivalent to 70p today. On Friday, shares closed at £1.13 so shareholders have enjoyed good capital gains and uninterrupted dividend growth too. A payout of 5.6p is expected this year, putting the stock on a yield of almost 5%. Long-term investors should stick with the business. The enlarged business may even attract some newcomers.
