Tesco to close last remaining Homeplus stores

Posted on 16 May, 2015 by Kirsten Kennedy

As Tesco continues to suffer from the fallout created by the supermarket price war and the write down in value of its UK property values, Chief Executive Dave Lewis has to make a series of increasingly tough decisions to return group finances to the black. This week, the group has announced that its remaining six Homeplus stores will be forced to close in the coming weeks, leading to the loss of around 450 jobs.

ID:69768031

The portfolio of 12 Homeplus stores were originally introduced in 2005, when then-chief executive Terry Leahy made the decision to trial non-food stores as part of the group’s rapid expansion which created the phenomenon known as “Tesco Towns”.

However, in the current climate, six of the original stores were deemed too costly to run during the last review as none managed to make a profit before rent was taken into account, leading them to be included in the 43 store closures announced by Mr Lewis earlier this year.

While it was hoped the remaining stores would manage to turn around as consumer spending rose, none are deemed profitable enough to be a valuable asset to the group. Therefore, the remaining locations in Bracknell, Bristol, Bromborough, Denton, Nottingham and Preston will soon close their doors for good.

A spokesman for the supermarket chain expressed a hope that the 450 staff members due to lose their jobs will be able to find work elsewhere in the Tesco network.

He said; “We’ve taken the difficult decision to close our remaining six Homeplus stores.

“Our priority is now to explain what this announcement means for our colleagues and wherever possible, offer them alternative roles with Tesco.”

The write down in Tesco’s property values to the tune of £4.7 billion was a massive contributor to the group’s worst ever performance. Last month, the group was forced to reveal a pre-tax loss during the last financial year of £6.4 billion, which will go down in history as one of the greatest losses in British corporate history.

While Tesco’s supermarket outlets will continue to sell non-food items such as furniture, electrical goods and clothing, the loss of the six Homeplus stores will be seen as a major blow for the chain at a time when executives are insisting the turnaround plan currently being implemented by Dave Lewis is beginning to bear fruit.

And with Aldi and Lidl both continuing to grow market share whilst upmarket Waitrose squeezes from the opposite end of the scale, it seems that Tesco’s problems may only just be beginning to intensify.




Leave a Reply


Recent Posts

Britishsteel Getty Images

British Steel on the verge of collapse with over 20,000 jobs at risk

Notre Dame de Paris

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams 2018

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel_Macron

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market

Oxford_Street_Selfridges_Christmas_Decorations_2017

Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office

When to decide if a building should be demolished

When old buildings should be demolished