The grocery retailer has enforced a new three-day a week office rule for its more than 5,000 head office staff members through an internal email across its three offices in Leeds and Leicester, according to The Telegraph.
It is understood the message from Asda chairman and interim chief executive Lord Rose, said three-day office attendance will be compulsory from January 2025.
The mandate came alongside an announcement of job cuts, which Lord Rose described as an attempt to “remove duplication and simplify structures”. However, the supermarket did not state how many head office staff would be made redundant.
Lord Rose said: “Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”
Asda's Shift to a More Collaborative Work Culture
A spokesperson for Asda said the new work-from-home policy aligned with that of rival supermarkets, such as Tesco, Aldi and Morrisons.
The spokesperson added: “This approach brings us in line with our competitors and the wider market, allowing us to build high-performing teams with a collaborative culture and respond to what our business needs the most.”
“The change is effective from January 2025 to allow time for all colleagues to make any necessary arrangements.”
Asda's Turnaround Plan
The changes come amid a turbulent year for the supermarket giant, as it attempts to deliver a turnaround plan to halt its recent decline in sales.
Last month, Lord Rose assumed executive responsibilities alongside TDR Capital partner co-founder following Mohsin Issa stepped down as chief executive.
Asda is continuing its search to recruit a permanent CEO to lead the turnaround.
Battling Declining Market Share
Asda’s share of the grocery market has continued to drop, according to Kantar, with sales down by 5.6 per cent year on year. Its share of the market fell to 12.6 per cent in the 12 weeks to 1 September, down from 13.8 per cent.
“We also know that there are some areas where we can and need to improve,” chief financial officer Michael Gleeson told City AM earlier this year. “We’re focusing on availability. We’re focusing on customer perception, and we’re focusing on our trade plan.”
A New Era for Asda?
The move to bring back staff to the office follows a trend of other retailers such as Tesco who have also adopted a hybrid working model.
Asda’s move to reduce its workforce and bring back its head office staff to the office three days a week represents a significant shift in the company’s operations. It remains to be seen whether these changes will help Asda to regain its competitive edge and turn around its declining sales. It is also an important signal for the retail industry on the future of work and office culture. As the grocery sector continues to grapple with inflation and changing consumer habits, these changes could be a harbinger of things to come.
The changes also highlight the pressures facing the retail sector as it navigates economic uncertainty. The decision to cut jobs and mandate a return to the office underscores the importance of cost-cutting and efficiency measures for businesses in the current climate.
