Asda unveiled plans to give its store employees a double pay rise this year as the UK’s stubborn inflation continues to weigh on living standards.
(Bloomberg) — Asda unveiled plans to give its store employees a double pay rise this year as the UK’s stubborn inflation continues to weigh on living standards.
The UK’s third-largest supermarket will ramp up salaries by 10% across two stages, with one raise in April and another in July. It means that shop staff across the UK will earn £11.11 ($13.32) an hour, up from £10.10 currently. In Greater London, Asda is set to pay £12.28, up from £11.27.
All the major grocers increased their staff wages at least once last year as the cost of living rises. Tesco Plc hiked pay in November while J Sainsbury Plc raised salaries last month in its biggest-ever investment in pay.
Asda, owned by brothers Mohsin and Zuber Issa with buyout firm TDR Capital, said the pay rises for more than 115,000 staff will cost it a record £141 million. It’s another sign of retailers’ margins being squeezed by rising costs and the need to attract cash-strapped customers.
‘Challenging Times’
“We know that rising living costs are affecting customers and colleagues alike and recognize we have a responsibility to support them during these challenging times,” said Mohsin Issa, Asda’s co-owner.
Asda said it’s also locking prices on 600 products including meat, dairy, fruit and vegetables until the end of May. The measure follows the supermarket introducing its Just Essentials budget range last year.
The supermarket chain said last month that it’s seeking to remove a premium paid to night-shift employees and switch shifts so that staff re-stock during late evening or daylight hours. In other cost-cutting moves, Asda is losing more than 200 manager roles as well as closing some pharmacies and reducing opening hours for in-store post offices.
Food inflation is showing little sign of slowing in the UK even as the broader rate of price rises starts to ease. Waitrose announced price cuts earlier this week as the premium grocer attempts to win back shoppers who have defected to cheaper rivals like discounters Aldi and Lidl.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.