LONDON: Britain’s biggest retailer, supermarket giant Tesco, said Wednesday it plans to cut 1,100 jobs with the closure of a call centre in the Welsh capital Cardiff.

Operations will be shifted to its office in Dundee, Scotland, creating 250 jobs, Tesco added in a statement.

“The retail sector is facing unprecedented challenges and we must ensure we run our business in a sustainable and cost-effective way, while meeting the changing needs of our customers,” said Matt Davies, chief executive of Tesco’s UK operations.

Tesco last week reported climbing sales during its first quarter by keeping a lid on food prices despite rising UK inflation.