Member Article

Tesco to close 43 ‘unprofitable’ stores as supermarket wars continue

Supermarket giant Tesco has today announced the closure of 43 ‘unprofitable’ stores, a ‘significant proportion’ of which will be local convenience stores.

The retailer reported total UK sales down 0.7% at actual rate for the 19 weeks to 3rd January 2015, compared to a decline of 3.2% in the second quarter.

Like for like sales (excluding fuel) were down 2.9% for the same period, with a small spike of 0.3% for the six week Christmas trading period.

The supermarket has decided to consolidate head office locations, closing Cheshunt in 2016 and making Welwyn Garden City the UK and Group centre.

Black Friday promotions resulted in the highest week of sales on record for Tesco Direct, contributing to 22.2% like-for-like sales growth in online merchandise for the Christmas 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.

“I would like to thank all of my colleagues in Tesco. The unique combination of retail expertise and real passion for the customer has been an inspiration to be a part of. In difficult circumstances the team has begun the challenging task of reinvigorating our business. There is more to do but we have taken the first important steps in the right direction.

’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.“

This was posted in Bdaily's Members' News section by Ellen Forster .