Almost 4,000 jobs are reportedly at risk at discount chain Wilko which has stores in Gloucester, Cheltenham and Stroud.

The company, which has 406 stores nationwide and employs around 20,000 people, says "change is never easy" and is now entering a long period of consultation with employees and working with the GMB union.

A statement from Wilko to Punchline said: "Wilko confirms that following a review of its operating functions it is entering into consultation with a number of its team members at store level nationwide including its Gloucestershire stores to discuss changes to the current team structure."

The High Street value retailer says it is introducing a new simplified retail team structure to ensure it is best placed "to continue to thrive within an ever-changing retail landscape and to ensure it can operate successfully and competitively".

Anthony Houghton, retail director, said: "Wilko is committed to the future growth of the business and reviewing how we stay relevant to our customers in Gloucestershire. We do this by making sure all retail operations are fit for the future in order to provide customers with the best possible service.

"Despite the challenging retail landscape wilko has seen both positive customer numbers and like for like sales growth this year. This is not translating into positive results despite all the hard work to reduce costs, grow own-brand and digital sales."

"As a family-run business, we care greatly about team members in Gloucestershire and know that change is never easy. We are working with our recognised trade union the GMB, listening to team members and offering support at all levels.

"We are entering into a long period of consultation and wherever possible are aiming to redeploy team members into new roles and offering help and support to those seeking new opportunities.

"These changes are vital to ensure that we are more efficient as a business and so can continue to serve our customers in Gloucestershire for many years to come.

The move comes after Wilko reported an 80% fall in pre-tax profits to £5.1m for the year to 28 January, pointing to political economic uncertainty, the collapse in sterling and the introduction of the national living wage.

Punchline says:

It's a perfect storm for Wilko. We've had the falling pound, rising prices and increased competition in the discount market from the likes of B&M, Home Bargains and The Range.

What do you think? Email mark@moosemarketingandpr.co.uk