LONDON: Only less than 40 per cent of the employees of Wal-Mart-owned Asda will be entitled for bonus payments this year as the supermarket's performance has been lackluster, it is reported in the newspapers.
A spokesperson for the company said its financial figures for 2005 are yet to be finalised, but it is likely than only one-third of the 300 stores had met profitability targets.
Last year, 113,000 -- 94 per cent -- of its employees got bonuses averaging 264 pounds (in some cases as much as 360 pounds where the stores outperformed targets) totalling 19 million pounds, but this year, the number will be around 46,500. The company is to make the payment in February.
Asda, No 2 to supermarket Tesco, has been losing market share in view of a revival by No 3 player J. Sainsbury.
The spokesperson said 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”. Staff in about 100 stores will be receiving the payout.
Head office managers, including new chief executive Andy Bond, are not likely to receive the payment.
Parent Wal-Mart had revealed that its same-store sales grew only 2.2 per cent December, its lowest figure for five years.
Bond had said Asda "did better" than fourth-placed group Morrisons, which grew sales by 2.8 per cent, but admitted it was "operationally failing" and that its fresh food was "not good enough". The company will now be more aggressive with price cuts.
Posted
on : Sun, 22 Jan 2006 02:35 GMT | General News
By : Mark Richardson
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