James Moore: A pay rise can pay off for Sainsbury'sComments Off on James Moore: A pay rise can pay off for Sainsbury's
As if supermarkets didn’t have enough on their plate with food-price deflation and the impact of Aldi and Lidl, their staff want rises.
Have 4%, Sainsbury’s has said.
Has chief executive Mike Coupe gone crazy? Like a fox.
Investors might grouse, but with George Osborne’s “living wage” looming anyway it could be said he’s just getting ahead of the game.
Moreover, while the biggest issue for supermarkets might be keeping up with the Joneses on price, Sainsbury’s survival strategy partly rests on making it a pleasant place to shop.
Its spacious stores might not be as profitable per square foot as its competitors are, but Sainsbury’s can make the chore of the weekly shop less painful.
Smiley staff help with the latter too.
Now Sainsbury’s staff have reason to be cheerful and the grocer has helped itself with a growing problem, even it doesn’t make solving some of its other issues any easier.