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Tesco names 43 UK store closures


Conniff
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Supermarket giant Tesco has named the 43 stores it is closing across the country, a move that will see 2,000 staff lose their jobs.

 

The company is currently informing staff at the affected stores.

 

The Express and Home Plus stores will close on 15 March with the Tesco Metros and Superstores on the list closing on 4 April.

 

Tesco warned earlier this month that 43 stores would be shut as part of plans to cut costs.

 

Tesco chief executive Dave Lewis said the decision to close the stores was "exceptionally difficult".

 

"Our priority is to explain what this announcement means for our colleagues and, wherever possible, offer them alternative roles with Tesco," he added.

 

Superstore closures include those in Doncaster and Chatham, while the DIY and homeware Homeplus closures include stores in Edinburgh and Southampton.

 

In total, 18 Express, 12 Metro, seven superstores and six Homeplus stores are shutting their doors.

 

Troubled Tesco

 

43

 

unprofitable stores to be closed

 

 

 

£250m of cost cuts planned

 

49 planned new stores to be cancelled

 

0.3% fall in like-for-like store sales over the six-week Christmas period

 

Source: TescoPA

 

The move follows two successive years of falling sales and profits, and a shock accounting scandal, which saw the chain overstate its profits by some £263m.

 

Mr Lewis, who joined the retail giant from consumer goods firm Unilever just five months ago, has pledged to slash costs and sell assets to fund lower prices and mend Tesco's finances.

 

Retail union Usdaw said the store closures were "devastating news" for the 2,000 staff involved.

 

"Our priority is to maximise employment within Tesco, seek redeployment opportunities for members, where possible, and to keep job losses to a minimum," said Pauline Foulkes from the union.

 

Tesco's announcement marks a stark contrast to Tuesday's update from Waitrose that detailed plans to create 2,000 jobs in new shops and by expanding existing sites.

 

The retailer is opening 14 new shops from spring this year, seven of them smaller convenience outlets.

 

However, of the so-called "big four" supermarkets, which includes Tesco as well as Sainsbury's, Morrisons and Asda, most are shelving expansion plans or even closing stores.

 

In November, Sainsbury's said it was scrapping plans for new stores, while Morrissons plans to close 10 loss-making stores this year.

 

Tesco store closures

 

Tesco Express stores:

 

Bearwood

 

Belvedere

 

Church Street Ballymena

 

Heaton Chapel

 

Heybridge Essex

 

Houghton Regis

 

Liverpool Kensington

 

Longbridge Road Barking

 

Northfield Birmingham

 

Raymouth Lane Worksop

 

Sheffield Manor

 

South Tottenham High Road

 

Tredegar

 

Troon

 

Walsall Wood

 

Wealdstone

 

Whitley Bay

 

York Road Hartlepool

 

Tesco Metro stores:

 

Bicester

 

Bootle

 

Caerphilly

 

Crossgates

 

Devizes

 

Grangemouth

 

Mexborough

 

Morecambe

 

Ormskirk

 

Runcorn

 

Smethwick

 

Woodseats

 

 

Tesco Superstores:

 

Bedlington

 

Chatham

 

Connswater

 

Cregagh Road

 

Doncaster

 

Kirkcaldy

 

Wrexham Doods Lane

 

Tesco Homeplus:

 

Bristol Cribbs

 

Chelmsford

 

Chester

 

Edinburgh

 

Southampton

 

Staines

Edited by Conniff
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I suspect that if you google mapped the stores, you will find much competition within a mile radius.

 

I have the choice of 5 big supermarkets within walking distance of home and that does not include the smaller metro type shops. There are also independent greengrocers, butchers and bakers, which seem to be able to trade ok.

 

With home deliveries being popular particularly with younger people, will they need all these big supermarkets ? I don't think that they will and there will be further closures by all the different companies.

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I suspect that if you google mapped the stores, you will find much competition within a mile radius.

 

 

But surely the answer isn't to close your store but make it better than the competition and offer goods, services and prices that will make shoppers want to come to you rather than the competition.

 

 

We only use them for bits and pieces now, we use home delivery.

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Many of the non-Express stores closing are in city centres or shopping centres where the rent is disproportionately high to the store turnover. With Express and Extra stores Tesco very often own the property so even though turnover may be lower there are fewer expensive overheads.

 

Ultimately shopping habits have changed - not only is home delivery growing rapidly but people are more mobile and price-savvy. They can travel around several stores to get the best prices at a particular time and far fewer people now use a town centre to do their weekly shop

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Many of the non-Express stores closing are in city centres or shopping centres where the rent is disproportionately high to the store turnover. With Express and Extra stores Tesco very often own the property so even though turnover may be lower there are fewer expensive overheads.

 

Ultimately shopping habits have changed - not only is home delivery growing rapidly but people are more mobile and price-savvy. They can travel around several stores to get the best prices at a particular time and far fewer people now use a town centre to do their weekly shop

 

I get Tesco to deliver for £1, which saves me an hours trip to the Supermarket and is cheaper than going by car, where your car could be subject to damage in the car park. Plus I have found that with deliveries you often get deals cheaper than the shop is offering on the day and if they don't have an item, it is often replaced with a more expensive option at no extra cost. My last order had longer shelf lifes than what was on the shelves in the shop, so it seems that they pick fresher items that what you would get in store.

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Yes home shopping is increasing, however do not be fooled. The supermarkets LOSE £25 on each order, subsidised by the shoppers that come into store.

 

Tesco has always in troubled times, returned back to its core business. FOOD. Non food will bear the brunt of the costs. EG Home Shopping Store in Southampton. My thoughts are with the staff there, a few of which I know personally.

 

The one thing TESCO are guilty of, is massive underinvestment in their staff. They have cut and cut and cut, and as a result the staff are not there to get the stock on the shelves. If it is sitting in a warehouse, it is not selling!! THAT is why their sales have fallen as much as they have. Price is a factor. Availability is more important!

 

Express stores, I can understand those, they are normally rented and in areas like London, and major cities there are many of them within 1 mile radius. Some of them being ex One Stop stores that were converted. I would not be too surprised if TESCO actually SOLD the One Stop brand that not many people realise they own.

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Non food will bear the brunt of the costs. EG Home Shopping Store in Southampton. My thoughts are with the staff there, a few of which I know personally.

 

Me too...I was in there only recently, and I know many staff at some of the other stores affected

 

You are absolutely correct - home delivery is always subsidised in any form and the true cost of the service can never be fully passed on, although with growth comes a certain economy of scale. The service has to be offered though to retain loyalty and those who were later into that market have lost out.

 

Yes there has been a massive underinvestment in staff, but in the face of falling sales staffing is a cost which rarely recovers itself through sales - that is why checkouts can never be fully manned by dedicated staff and self serve units have increased - it is impossible for any retailer to have a person on every checkout in the hope that they will be kept busy. It is all too easy to say that staffing needs investment - it does, but not at the expense of profit and every investment has to generate at least that amount of profit to justify it. The mistake that Tesco (and let's not forget that others are in a similar position - or will soon be) is that they reduced checkout staff first and multiskilled shop floor staff to the point where availability and customer service suffered. It would have made more sense to multiskill the dedicated checkout staff to 'jump off' checkouts in quieter periods to fill shelves. I agree that nothing is more frustrating than not being able to complete the shopping trip due to unavailable products. One of the changes that has to happen is that rebalancing in terms of staff numbers - it is now all about service as there is little room to compete with the discounters on price, but good service and product choice are things which will bring some of those lost customers back.

 

The dilemma for any retailer is balancing value for the consumer with margin and overheads. Tesco (and others) are incredibly good at food retailing, but with the increasing demand for cheap food and value for money in the face of the foreign discounters this has seen the already skinny margin on grocery eroded so far that the difference has had to be balanced elsewhere. Non Food is essential to the business as so much of it is very profitable - more so than grocery, but the problem has been that Tesco have tried to do a bit of everything rather than focus on the most profitable areas. Electrical items are very expensive to stock and margins are small, yet paper goods, cards, stationery, magazines etc are far more profitable. I agree that the more expensive non-food areas will suffer at store level as more is pushed towards Click & Collect, but in many areas there will be little change as there is still too much to lose.

 

Express has grown as people now shop daily for essentials and quick meals rather than stocking up for the week. One Stop won't go anywhere - it is too profitable and is in fact expanding through partnership branding schemes with independant retailers. It is sufficiently divorced from Tesco that the price points do not have to match and customers pay that bit more for 'convenience' (as they do in Express but by nowhere near the same amount). It was and is good business for Tesco - the smaller turnover stores are One Stop and those which turnover more - or were in an area without a Tesco presence - were refitted as Tesco.

Any advice given is done so on the assumption that recipients will also take professional advice where appropriate.

 

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The SabreSheep, All information is offered on good faith and based on mine and others experiences. I am not a qualified legal professional and you should always seek legal advice if you are unsure of your position.

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