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Morrisons To Open New Convenience Stores

Supermarket chain Morrisons is to open convenience stores and may sell groceries online, the chain announced today.

Britain’s fourth biggest grocer outlined the plans as it announced that 800,00 extra customers were shopping at the store every week.

It posted half year pre-tax profits of £412m, down 8% on last year, but said the performance was solid.

The chain pointed to the fact sales were still growing – up 0.9% on last year. Read more »

Customer facing call centre jobs to remain in the UK

Despite UK companies reverting back to outsourcing call centre operations abroad, most customer facing roles are likely to remain in the UK, according to Mark Conway, director at Contact Centre Partners.

The latest Chartered Institute of Personnel and Development (CIPD)/KPMG Labour Market Outlook shows that nearly one in 10 (9%) private sector companies plan to offshore jobs in the 12 months to June 2011. Of those planning to offshore UK jobs, 65% intend to offshore to India, a third to China (36%) and to Eastern Europe (29%). The most common functions outsourced by employers include call centre jobs (55%), IT (51%), and finance (49%).

“Most of the companies that we deal with are looking to keep customer service staff in the UK, but they do tend to move back office processing functions or non-customer facing roles overseas. Some clients have moved roles where customers interact through text chat to cut costs.

“We do have a number of clients that have operations overseas, and people will always outsource to save on costs but most large organisations keep their staff in the UK wherever possible because there is a significant increase in the level of service provided by those call centres based here in the UK.”

The CIPD/KPMG report also shows that 45% of the 600 employers surveyed say that vacancies are hard to fill, with 21%, saying they are recruiting migrant workers for engineering vacancies, and 18% for IT and accountancy/finance positions respectively.

Consequently, 17% intend to recruit migrant workers in Q3 2010. In the past quarter, 21% of employers surveyed recruited migrant workers with 37% of these workers being hired from outside the European Economic Area (EEA).
Gerwyn Davies, CIPD public policy adviser and author of the report, says: “The study highlights the complex juggling act the government now faces. The proposed introduction of a migration cap comes at a time when many employers are still struggling to fill skilled vacancies; despite the high unemployment rate.

“The training of local or British workers to fill skilled jobs currently occupied by migrant workers will not happen overnight. And despite our efforts to educate and train staff for shortage occupations, there is no guarantee that they will go on to progress in that career; as we have found with engineers.

“If a cap is to be introduced therefore, it has to be gradually phased in to avoid harming UK competitiveness. Employers running global operations will be forced to offshore skilled jobs to other countries if the right skills mix in the UK cannot be found.”      

Malcolm Edge, KPMG UK head of markets, adds: “Our own research shows that UK businesses are increasingly optimistic about their prospects. In moving forward, businesses need the right people with the right skills.  Increasingly, they are looking overseas to address this skills gap recruiting people to the UK or deciding to offshore both work and jobs. If the Coalition government do decide to introduce a cap, they will need to work closely with business to ensure that there is a correct balance between investment here in the UK and abroad.”

Source : Recruiter

Strike ballot for BT workers over pay dispute begins

Telecoms workers at BT are being balloted on strike action in support of their pay dispute with the company.

The Communication Workers Union (CWU) says BT can afford a 5% pay rise after what it says is a two-year wage freeze and a round of redundancies.

The company has offered an increase of 5.1% over 21 months and several one-off payments. The ballot closes on 5 July.

Andy Kerr, of the CWU, said it was “seeking an affordable and reasonable pay rise for our members in BT”. Read more »

Firms Profit From World Cup Vuvuzela Craze

Despite growing irritation caused to fans and players alike, supermarket chain Sainsbury’s say they have sold 40,000 of the plastic trumpets at £2 each.

Sainsburys expects another 35,000 to fly off the shelves by the end of the tournament.

When England played against the USA on Saturday it sold a vuvuzela every two seconds. Read more »

Spar inks £150m retail deal with Bourne Leisure Group

Spar has signed a deal with Haven and Butlins Holiday owner Bourne Leisure Group to open branded convenience stores at all its UK sites.

The £150m deal will see Spar open 42 stores in all 36 Haven Holiday Parks across England, Scotland and Wales and the three Butlins Family Entertainment Resorts in Bognor Regis, Skegness and Minehead creating hundreds of sales assistant jobs.

As part of the partnership, the on site stores will benefit from Spar’s national promotional activity and consumer marketing including £5m media spend to promote the stores. Read more »

UK retail sales boosted by warm weather and discounts

UK retail sales rebounded in May, driven by the warm weather and discounting, a survey has said.

Like-for-like sales, which take out the impact of new store openings, rose by 0.8% compared with a year ago, the British Retail Consortium (BRC) said.

Sales of televisions in the run up the World Cup also helped to drive sales, the group added.

Retail sales growth was weak in May last year, which also helps to explain the rise in sales last month.

World Cup boost

But the figures do provide some cheer after retail sales fell sharply in April.

“The sunnier second half of May provided a welcome boost to overall sales,” said the BRC’s director general Stephen Robertson.

The warmer weather, together with discounts and promotions, encouraged spending on clothing, footwear and outdoor DIY.

Discounts also helped to boost sales of televisions ahead of the World Cup, a tournament that should drive sales of other football merchandise in the coming weeks, Mr Robertson said.

However, he did caution that there was still “plenty of uncertainty, which is making consumers nervous about buying expensive goods.”

Source : BBC News

Tesco chief Sir Terry Leahy to retire

Tesco has announced that chief executive Sir Terry Leahy is to retire from the supermarket chain next March.

Sir Terry has led the chain for 14 years and has overseen its rise to become the UK’s leading supermarket.

He is to be replaced by international and IT director Philip Clarke, who said he was “honoured and delighted” to succeed Sir Terry.

Sir Terry, who earned £5.2m last year, said he would retain a large shareholding in Tesco. Read more »

RBS upgrade leads to job cuts at Coutts

Royal Bank of Scotland is cutting 500 jobs from its UK wealth management business, with the sword falling most heavily at the Queen’s banker Coutts & Co.

RBS will cut the jobs over the next three years as it replaces outdated technology with a more modern IT system. The redundancies bring to 23,100 the total number of roles which have been removed since RBS was bailed out by the taxpayer in October 2008. Its headcount now stands at 160,000. Read more »

Asda picks up Netto in £778m sale

Asda is to buy Netto, the discount food chain, in a move that will add 193 stores to its estate.

The group, which is owned by the US retailer Wal-Mart and is Britain’s second-biggest supermarket chain, has agreed to buy the stores for £778 million from their Danish owner, Dansk Supermarked.

It expects to complete the sale this summer, unless the Office of Fair Trading objects, and to finish refurbishments under the Asda brand by the middle of next year. Read more »

Boots Reports Leap In Profits To Over £1bn

The UK pharmacist Alliance Boots has reported over £1bn in profits, only the third ever UK retailer to do so.

Its trading profits rose 12.7% to £1.07bn on the back of a strong performance in its wholesale health beauty and pharmaceutical sales.

Revenue for the year up to March 31 rose 9.6% to £22.5bn. Read more »

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