LESS than 40 per cent of Asda’s eligible store staff will receive a bonus this year after the supermarket group failed to hit sales and profit targets.
Last year 113,000 staff out of about 120,000 eligible for a bonus, or 94 per cent, shared a £19 million payout. This year, as Asda struggles against tough competition from its rivals Tesco, J Sainsbury and Wm Morrison, the total payout will be less than half that amount as only 46,500 staff will receive the bonus next month.
One disgruntled member of staff who missed out told The Times: “The majority of staff at our own store are appalled, especially when we have worked several times harder this year as opposed to previous years.”
An Asda spokesman said that 2005 had been a hard year but “we’re immensely proud that, in spite of the tough trading environment, a number of our stores have hit their bonus targets”.
He pointed out that staff at about 100 Asda stores would receive a payout while many other retailers were unlikely to give their workers a bonus this year because of general poor trading on the high street.
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It is understood that head office managers, including Andy Bond, new chief executive, will not receive a payout.
The spokesman added: “In terms of 2006, we’ve a strong business plan in place and new targets and are well-placed to deliver the results needed for even more to earn a bonus in 2006.”
This month Wal-Mart, the owner of Asda, revealed that same-store sales grew only 2.2 per cent last month, its lowest figure for five years.
In the UK Asda’s underlying sales performance is believed to be well below that of Tesco and Sainsbury’s, although Mr Bond was reported as saying that the chain “did better” than the 2.8 per cent underlying sales growth at Morrison.
Mr Bond admitted last month that Asda was “operationally failing” and that its fresh food was “not good enough” as he announced plans to step up the pace of change.
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In a frank briefing to City analysts, Mr Bond added that Asda would be more aggressive with price cuts this year because he recognised that rivals were closing in on its low-price territory.
He is also launching a new Asda own-brand-only store called Asda Essentials, which is designed to compete with discount retail chains such as Aldi and Lidl and aims to improve the availability of goods and customer service in store.
This month Asda launched its first January sale, ploughing £40 million into a three-week non-food promotion of the kind familiar to high street retailers.