Tesco to shut 43 stores as sales fall again
- Credit: PA
Tesco is shutting its head office as well as 43 unprofitable stores as part of a raft of new measures as new boss Dave Lewis battles to turn around the group's fortunes.
Britain's biggest supermarket made the announcement as it revealed like-for-like sales for the 19 weeks to January 3 fell by 2.9%, though they were not as bad over the six-week period, with a fall of 0.3%.
Tesco also said it was to close its final salary pension scheme and shut its main headquarters in Cheshunt, Hertfordshire, in 2016, moving to Welwyn Garden City. A restructuring of central overheads is expected to save £250 million a year.
In addition to the shutting of shops, the group announced a 'significant revision' to its store-building programme.
It is also selling Tesco Broadband and UK download business Blinkbox to TalkTalk and exploring options for the disposal of its dunhumby data business, as well as cancelling a final-year dividend for 2014/15.
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The raft of announcements came as the supermarket also fired the latest salvo in a New Year price war, by cutting the cost of some of its best-known products.
Chief executive Dave Lewis said: '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.
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'Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results.'