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Tesco to shut 43 unprofitable stores and HQ

Under-pressure supermarket Tesco is to close 43 unprofitable stores, as well as shut its head office in Cheshunt in 2016.

The retailer's sales fell 2.9% in the 19 weeks to January 3 and by 0.3% over the six-week Christmas period.

Earlier it announced that it was launching a fightback by cutting prices on hundreds of its products.

Shoppers will see lower prices on household favourites from brands such as Hovis, Marmite and Coca-Cola as the company tries to win back market share from discount rivals such as Aldi and Lidl.

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How Tesco plans to save £250 million a year

Tesco said it would reduce its capital expenditure for next year to £1 billion Credit: PA

Beleaguered supermarket Tesco has unveiled a raft of measures it hopes will turn around its fortunes.

With the company's pension deficit and debt levels growing, Tesco said it would reduce its capital expenditure for next year to £1 billion, from no more than £2.1 billion this year and cut costs by £250 million a year.

Tesco's money-saving plans include:

  • Closing 43 unprofitable stores
  • Closing it final salary pension scheme
  • Shutting its main headquarters in Cheshunt, Hertfordshire, in 2016, moving to Welwyn Garden City
  • Restructuring central overheads to save an estimated £250 million a year
  • A "significant revision" to its store-building programme - with plans for 49 new stores scrapped
  • Selling off Tesco Broadband and UK download business Blinkbox to TalkTalk
  • Exploring options to sell its Dunnhumby data business, as well as cancelling a final-year dividend for 2014/15

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