Shufersal Ltd. (TASE:SAE) is moving into high gear with its streamlining plan. Sources inform "Globes" that the supermarket chain will fire 100 employees at its overstaffed head office and close down 15 loss-making branches.
This comes after Shufersal has already laid off 65 employees at its head office, which at its peak had 435 employees. This means that in total the supermarket chain is downsizing its head office by 40%.
As part of its streamlining plan, IDB Development unit Shufersal is also closing down 15 loss-making branches, which will save an estimated NIS 112 million. The chain will also lower prices of many products to make them more competitive, narrow the gap between prices in its neighborhood and discount stores, and introduce digital platforms.
The streamlining results come in the wake of worsening financial performance with the chain losing NIS 157 million in the second quarter of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014