Value retailer Wilko is warning that there could be job losses at the company, which has just entered into a period of consultation with staff.
In a statement Wilko confirmed: "The company is now consulting on changes which may result in a reduction in the number of roles in some areas in its head office, supply chain and retail departments where the need to realign staffing levels has been identified."

However, a spokesman denied a report that as many as 170 employees were involved. He told diyweek.net: "The figure of 170 redundancies is media speculation and the company has not given (and cannot give until consultation is complete) any indication of how many posts may be affected. Consultation has just begun and it's not likely that the results of the consultation will become known for some weeks, and any redundancies will not be likely until next spring."

The statement went on: "Like all businesses, Wilko continually reviews its resources in order to ensure it has the right business structure in the changing retail landscape. It does so to maintain competitiveness and keep resources aligned to operational needs across all functions.

"This ongoing programme is essential to maintaining Wilko's unique place as a modern, national retailer. We have to ensure we have the right people in the right places to keep the business moving forward. New technologies, processes and ways of working have led us to identify certain posts which are no longer appropriate to our focus on variety, value, choice, quality and customer service."

In the year to February 1 2014, Wilko saw sales drop 4.4% to £1,463m, continuing the 2.3% downward slide the year before, and pre-tax profit was flat at £28m.

Nevertheless, the company said "the business remains financially robust in a challenging trading environment. The proposed changes will allow it to react quickly in the fast-moving retail environment by ensuring its structures and cost base are in line with its trading performance and the marketplace."