business news in context, analysis with attitude

Reports in the British media say that Sainsbury plans to trim its headquarters staff by between 700 and 1,000 people – and then use the money saved in that “culling” to hire as many as 3,000 people who will work in its stores to improve the customer service experience.

The company also is selling off some real estate holdings and closing as many as 15 stores in order to cut costs.
KC's View:
You have to admire a company that at the very least is trying to gets its priorities right. It may be too little too late, and it may only be done because of a sense of desperation…but focusing on the shop floor is exactly what more retailers ought to be doing when faced with tough competition. Because it is only in the stores that consumer attitudes can be affected and consumer behavior can be shaped.

By the way, the smartest approach to this always has been that taken by Superquinn in Ireland….because it has only a Support Office that is there to support the stores, as opposed to a headquarters that would dictate to the stores.