Asda, Britain's second biggest supermarket group, said yesterday it was cutting around 1,400 management jobs, allowing it to invest more in front-line customer service in a challenging trading environment.

Owned by US retail giant Wal-Mart, the company said around 200 jobs would go at its centres in Leeds and Lutterworth, central England, and that about five positions would be lost at each of its stores.

The firm also said it was strengthening its senior executive team, with David Cheesewright returning from a 12-month stint at Wal-Mart in Canada to become Asda chief operating officer and trading director.

Andy Clarke will return to the firm after a three-year gap to be retail director, while Angela Spindler becomes customer and strategy director.

"While our sales have slowed in recent months as the economy's tightened, Asda is no retail straggler," recently appointed chief executive Andy Bond said in a statement.

"But I'm simply not satisfied with this year's average performance - our natural home is outperformance and today's changes put in place the teams - at board level, Asda House and in the stores - that will re-ignite our business over the next 12 to 18 months."

Retailers across Britain are suffering as debt-laden consumers rein back on spending following a series of interest rate rises and amid stagnating house prices.

Asda expected to be able to redeploy around four in 10 of the jobs lost in stores in more customer-facing positions, a spokesman said.

He said no stores would close as a result of the changes.