Tesco cuts back on store construction plans

Tesco announced today that it has shelved plans to open new stores and will cut its capital expenditure budget by half.

The supermarket giant announced a “significant” revision to its store building programme, the closure of 43 unprofitable stores and a reduced capital expenditure budget in 2015/16 of £1bn.

Dave Lewis, chief executive, Tesco 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.”

The company, which has over 3,300 stores in the UK will also cut food prices and sell off assets due to falling sales and profit warnings.