THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Tesco to close 43 stores as part of turnaround plan

Tesco has announced plans to close its head office and 43 unprofitable stores as part of a raft of changes to help turn around the business.

GENERAL MERCHANDISE

Tesco to close 43 stores as part of turnaround plan

The supermarket unveiled the plans as it reported that its UK like-for-like sales fell by 2.9%, excluding fuel, in the 19 weeks to 3 January, which was an improvement on the second quarter when sales fell by 5.4%.

Tesco said it will close its current head office and move it to Welwyn Garden City in 2016. It will also close its final salary pension scheme and restructure its central overheads which is expected to deliver savings of around £250 million a year.

In addition to shutting 43 stores, Tesco is planning a "significant revision" to its store building programme. It will also dispose of its Tesco Broadband and Blinkbox businesses to TalkTalk.

In a trading update Tesco said the UK performance included a gradual improvement through the third quarter and resulted in a like-for-like sales decline of 0.3% for the six week Christmas trading period.  

Meanwhile, international sales fell by 2.5% in the 19 week period.

Tesco chief executive Dave Lewis said: "We are seeing the benefits of listening to our customers. The investments we are making in service, availability and selectively in price are already resulting in a better shopping experience. A broad-based improvement has built gradually through the third quarter, leading to a strong Christmas trading performance.  

“We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation. Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results."

Tesco also announced that it has appointed Halfords chief executive Matt Davies as its new chief executive for its UK and Ireland business.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing