UK supermarket chain Tesco has revealed plans to overhaul its large in-store bakeries that will leave 1,816 jobs at risk.
The decision follows as the retailer seeks to meet changing customer tastes and preferences.
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According to Tesco, demand for traditional bread loaves has dropped while there is an increasing demand for wraps, bagels flatbreads and other options.
From May, the company will implement several changes in large in-store bakeries and establish a partnership with small local suppliers to launch regional bakery ranges.
The retailer noted that bakeries at 257 stores will continue to offer freshly baked products.
Around 201 stores will offer only fresh-baked products while 58 stores will deliver pre-prepared products, which will be baked and finished in-store.
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By GlobalDataTesco UK and ROI CEO Jason Tarry said: “We need to adapt to changing customer demand and tastes for bakery products so that we continue to offer customers a market-leading bakery range in-store.
“We know this will be very difficult for colleagues who are impacted, and our priority is to support them through this process. We hope that many will choose to stay with us in alternative roles.”
In a separate development, Tesco has divested a 20% share in Gain Land to a subsidiary of its joint venture partner China Resources Holdings (CRH).
The £275m deal requires closing or regulatory approvals and is expected to be completed on 28 February.
Last month, reports emerged that Tesco was to face close scrutiny from a competition regulator in Thailand over the sale of its local operations.
