Supermarkets accused of hollow job creation claims in attempts to open new stores

By Sean Poulter for the Daily Mail
Updated: 19:05 EDT, 7 March 2011

Claims by the big  supermarkets to be driving economic growth by creating thousands of jobs have been exposed as a sham.

Supermarket bosses have used the claims as their major weapon to push through hundreds of controversial planning applications for more stores.

The boasts have also allowed them to stand alongside Prime Minister David Cameron to be hailed as job creation heroes.

Every little helps? Tesco¿s figures show an increase of just 874 jobs between 2009 and 2010, taking its total to 287,266

However, figures from their own annual reports reveal that the number of full-time jobs offered by Tesco and Sainsbury’s has actually fallen over the past two years.

It means virtually every announcement boasting of their creation of thousands of jobs is matched by cuts in other areas.

While the supermarket giants are building vast stores and extending others, staff numbers are not growing to match the extra sales space, figures also reveal.

But the true impact on jobs is even worse than this, argues the Association of Convenience Stores.

The body, which highlighted the double-dealing, argues the building of new supermarkets is killing off existing small stores  in many town centres, and in doing so putting many people out of work.

Falling: Reports produced by Sainsbury¿s for shareholders identified 148,500 jobs in 2009. However, this fell to 146,900 ¿ or 1,600 fewer ¿ in 2010

Annual reports produced by Sainsbury’s for shareholders identified 148,500 jobs in 2009. However, this fell to 146,900 – or 1,600 fewer – in 2010.

The figure appears to be at odds with the claims of chief executive Justin King, who in the 2010 annual report highlighted the creation of 6,500 jobs following the building of 100 stores.

Tesco’s figures show an increase of just 874 jobs between 2009 and 2010, taking its total to 287,266.

The net result, after adding the figures for the two grocery giants together, is a reduction of 726.

This drop in employee numbers came despite the fact that, at the same time, the two supermarket chains increased the amount of sales space between them by a whopping 2.85  million square feet.

ACS chief executive James Lowman is concerned that big chains will also use the economic downturn to push for an end to restrictions on the building of vast new out-of-town stores.

The association wants clauses to be added to the Localism Bill which would ensure that the protection of existing town centres is given priority.

He said: ‘Supermarkets are promising more jobs than can be delivered in order to secure planning permission for new out-of-town retail parks.

‘Communities could be left at the mercy of the big developers who could use the crisis as a way of  forcing through plans for big out-of-town stores, which would have a devastating effect on the long-term prospects for our high streets.’

He added: ‘Building big stores does not lead to an increase in jobs. The Government must not listen to supermarket propaganda and see that growth can come from sustainable town centres.’

In January Tesco and Sainsbury’s pledged to create thousands of jobs after Mr Cameron’s employment summit.

Sainsbury’s said it was creating 20,000 in the next three years, while Tesco said it was on course to deliver 9,000 jobs. However, what is less clear is how many jobs they will be cutting from the business at the same time.

The tactic mirrors the way stores promote price cuts at the same time as pushing through increases on other products without any fanfare.

A Sainsbury’s spokesman said the employment announcements it has made ‘represent genuine new job opportunities’.

He added: ‘We’re proud to have welcomed more than 13,000 colleagues into our stores over the last two years.

‘The improvements we’re making to the operation of our core business functions means that the total number of colleagues employed across every area of the company doesn’t necessarily increase at a proportionate rate.’

A Tesco spokesman said: ‘We said we’d create 11,000 new jobs in the 2009-10 financial year and we created 10,182.

‘Tesco’s track record in job  creation is second to none.

‘Our new stores and distribution centres, as well as Tesco Bank, have created tens of thousands of jobs for communities across the country over the past five years.’