Real plans to cut 750 jobs through redundancies in its stores by the end of next year due to the changing face of its logistics operations. Real plans to imprioe its current supply chain and shift more of its deliveries via its Distribution Centres than direct to store due to the increased labour costs involved in its current state. Real also plans to close an addtional 15 stores next year.
This move is the latest in a raft of initiatives including spending EUR 19M on the first 30 stores to be revamped in addition to another 20 which will be refurbished by the end of September. Real is making more progress in transitioning itself to a leaner and more efficient cost base but customers are still not flocking to its stores. Therefore we expect more innovation and pressure on suppliers to maintain this new leaner cost base.