Tesco shelves 62 planned stores in UK
Tesco will not proceed with the development of 62 planned stores in the UK in order to cut down on costs.
The move comes after the retailer posted £6.38bn in losses last year.
According to figures compliled by Barbour ABI exclusively for The Telegraph, the number of stores being slammed is three times as many new supermarket sites as all of its Big Four rivals including Sainsbury’s, Morrisons and Asda put together over the last five years.
ABI economist Michael Dall said: “It is indicative of the wider issues within Tesco that they are retrenching from some of their expansion plans.”
Sainsbury’s has abandoned 13 supermarket sites; Morrisons four; and Asda two during the same period.
“The Big Four have an advantage because of their size already, but as they shelve stores it provides an opportunity for Aldi and Lidl to move into new areas while they concentrate on other parts of the business,” Dall added.
Meanwhile, German discounters Aldi and Lidl have submitted applications to build 428 new stores in total and have abandoned four stores as they carry on expanding.
In January, Tesco CEO Dave Lewis originally said that the retailer would abandon 49 stores, as part of restructuring.
Lewis had also said that Tesco will close 43 loss-making stores, putting close to 2,000 jobs at risk.