Tesco stores to close.

[GrimsbyPacer]

Tesco are saying almost 50 Tesco stores will close, mostly Tesco Expresses. And many under construction won't open.

The beleaguered supermarket Tesco has said it will close 43 unprofitable stores across the UK - a "significant proportion" of which will be local convenience shops.
The firm is also shelving plans to open a further 49 new "very large" stores.
Additionally, Tesco is closing its staff pension scheme, will make cuts of £250m, and reduce overheads by 30%.

Where are these stores?

I know that the Immingham store which is almost finished won't open.
This store was delayed and should of opened by now.
The Kennedy Way shopping centre was knocked down for it aswell and now it's to be mothballed. I'm very disgusted at this.

Tesco are also selling their broadband and Blinkbox to Talktalk.

 

[Bletchleyite]

Just had a Tesco delivery and the driver mentioned it...they are a bit concerned for their jobs I think. That said, if delivery is taking off in a big way, perhaps moving to large centralised "dark stores" on cheap industrial estates is the way forward? I hate supermarket shopping, so I really like delivery, and today's cost me 2 quid, which is barely what the petrol would have cost to go to Tesco in person, let alone the time.

Apparently the list has not been released yet but they are mostly Tesco Express. I can think of one (right next to a Co-op) which is perhaps a likely target.

Neil

 

[Tetchytyke]

Down around London the home delivery stuff usually comes from a big industrial unit out at Enfield. I can imagine then moving more towards that, for economies of scale as much as anything.

Tesco are not the only ones doing it, Morrisons have recently closed a load of their local stores, and I wouldn't be surprised to see Sainsbury's follow suit.

Retail is going to continue to take a pounding because wages have stagnated for so long now that nobody has any disposable income left. If the people have no money they can't buy anything, and the whole economy will flatline (see 1929 for further details). People are deserting the expensive supermarkets for Aldi and Lidl in their droves, and I think it is through necessity not choice. I've shopped at Aldi for years and see plenty of well dressed middle-class families in there, and even two years ago I didn't (and the experience is worse for it!).

 

[Bletchleyite]

Tesco are not the only ones doing it, Morrisons have recently closed a load of their local stores, and I wouldn't be surprised to see Sainsbury's follow suit.

Morrisons are also opening, though - a huge new store by Milton Keynes Central (useful for rail passengers too) and an M Local just up the road from me.

I do wonder if Aldi/Lidl might consider delivery? With the simpler product range and small stores it would be far simpler and cheaper to operate.

I've shopped at Aldi for years and see plenty of well dressed middle-class families in there, and even two years ago I didn't (and the experience is worse for it!).

My parents love Aldi (and they are *very* middle class). I'd like it if it had a "free from" range (I think they will soon enough), and a store nearer me (the one at Bletchley closed, though, as it wasn't profitable enough, possibly because of the Lidl near enough opposite).

Neil

 

[gordonthemoron]

I don't think the new Morissons in CMK is that big, although I've not been yet, it's also a bit of a hike from the station M&S is more convenient, as is Greggs

 

[Bletchleyite]

I don't think the new Morissons in CMK is that big, although I've not been yet, it's also a bit of a hike from the station M&S is more convenient, as is Greggs

I was slightly more thinking commuters on the way home.

It is going to be bigger than the Westcroft store, which itself is one of their biggest, AIUI. And I understand (to my surprise, as they're, what, 5 minutes' drive apart), Westcroft is not closing.

Neil

 

[gordonthemoron]

how big is the car park?

 

[Greenback]

The public love affair with big out of town superstores seems to be waning a little. How times change, and how quickly!

It seems only a few months that Tesco were the flavour of the month, and always pointed out as being a huge success story.

 

[Bletchleyite]

how big is the car park?

Don't know, but I would imagine sufficient - it is at least in part underground. And probably with a strict 2 or 3 hour limit to stop it becoming an extension of the station one!

Neil
--- old post above --- --- new post below ---

The public love affair with big out of town superstores seems to be waning a little. How times change, and how quickly!

Partly the economy, and partly I guess deliveries! The latter is of course going back to what small shops used to do.

(Thought: room there for an Amazon Marketplace Groceries type operation where you buy direct from small companies e.g. farms but one organisation handles getting it all together and delivering it?)

Neil

 

[Strathclyder]

Plans for eight new stores across Scotland have been cancelled:
http://www.bbc.co.uk/news/uk-scotland-highlands-islands-30725122

 

[EM2]

Additionally, Tesco is closing its staff pension scheme

This is the bit that really annoys me. The management and board overstretch themselves, and the staff have to take the hit.

 

[Bletchleyite]

This is the bit that really annoys me. The management and board overstretch themselves, and the staff have to take the hit.

Erm, isn't it required to have a contributory pension scheme by law now?

If it's a final salary scheme, well, it was one of the few left and they can't really be criticised for that.

Neil

 

[Greenback]

Partly the economy, and partly I guess deliveries! The latter is of course going back to what small shops used to do.

I love it when the wheel comes full circle. Sort of!

This is the bit that really annoys me. The management and board overstretch themselves, and the staff have to take the hit.

It was ever thus and probably always will be. The worst that happens to those at the top is that they walk away with a nice fat pay off, often straight into a similar job elsewhere.

Talk about 'we're all in this together'.

 

[Antman]

It's a very competitive market and casualties are inevitable, Aldi in particular have taken a large chunk of the pie recently.

I heard something on the news about Tesco HQ in Hertfordshire closing

 

[Greenback]

Lidl's has also taken customers away from the traditional sector leaders.

 

[Tetchytyke]

I heard something on the news about Tesco HQ in Hertfordshire closing

Sort of...they're moving down the road to Welwyn Garden City.

 

[gordonthemoron]

how many Tesco stores are there? There are 10 or 11 in Milton Keynes alone (including 3 superstores)
--- old post above --- --- new post below ---

Sort of...they're moving down the road to Welwyn Garden City.

Haven't they had offices in Welwyn for several years?

 

[Tetchytyke]

I think so, most companies do. They're shutting Cheshunt and moving the head office functions to Welwyn.

 

[muddythefish]

They'd save even more money by shifting the HQ out of the south east.

Tesco deserve everything that's coming to them - the "Tescoisation" of towns has been destroying high streets for 30 years.
--- old post above --- --- new post below ---

Lidl's has also taken customers away from the traditional sector leaders.

I like Lidl - very good quality.

 

[Xenophon PCDGS]

How many times in the past have we heard of Tesco riding rough-shod over the authorities in towns where they wanted to build yet another "Temple of Tesco Mammon" totally ignoring the views of residents and local councillors.

This latest news seems almost biblical in its connotations of seeing how the mighty have fallen...:roll:

 

[Bletchleyite]

I like Lidl - very good quality.

I find them less pleasant than Aldi - I think it may be because their ranges are generally taken straight from Germany, while Aldi has Anglicised theirs a bit. They also (unlike Aldi now) don't take credit cards still, though I imagine that is only a matter of time as they will otherwise lose business to Aldi.

Neil

 

[lyndhurst25]

Tesco are also selling their broadband and Blinkbox to Talktalk.

Not pleased. I'm in the process if transferring to Tesco home phone and broadband. My parents are with them already and they have actually been quite good. Tesco Broadband get a good review in Which? magazine, whereas TalkTalk always get terrible reviews so were on my bargepole list. I'm not looking forward to the takeover and if TalkTalk change anything in my contract (free calls to other Tesco phone subscribers, Clubcard points, etc.) then I'll be leaving ASAP.

 

[maniacmartin]

I find them less pleasant than Aldi - I think it may be because their ranges are generally taken straight from Germany, while Aldi has Anglicised theirs a bit. They also (unlike Aldi now) don't take credit cards still, though I imagine that is only a matter of time as they will otherwise lose business to Aldi.

Neil

They do take credit cards now. No Amex though.

 

[Heinz57]

It has also been announced that Matt Davis, currently CEO of Halfords will be taking over at Tesco in June.

It is quite a jump from Halfords to Tesco. That should be good for Tesco though, Matt is really good, in the space of two years he has completely turned around Halfords, and did the same with Pets at Home before that.

It also announced that Matt Davies, the boss of Halfords Group, will take charge of Tesco's operations in the UK and Republic of Ireland from June, and that Trevor Masters will become international chief executive. Halford's shares dropped on the news that it was to lose its boss to Tesco.

 

[muddythefish]

Managing a giant like Tesco is a big task though. I predict he'll be on his bike back to Halfords within 6 months.

 

[bb21]

Is there any particular reason why you don't think he will succeed, or is it just instinct?

 

[Busaholic]

Tesco has a defined-benefit pension scheme, one of the last left amongst retail companies, and is closing this to new employees. Tesco will, of course, have to set up an alternative pension scheme for them.

 

[ModernRailways]

They'd save even more money by shifting the HQ out of the south east.

Tesco deserve everything that's coming to them - the "Tescoisation" of towns has been destroying high streets for 30 years.

I don't think moving our HQ from the South East would be beneficial. If you want the top people then you need to be with other big businesses.

The 'Tescoisation' also hasn't exactly been destroying towns, it may be the final nail in the coffin for some smaller stores that were literally just scraping by but as can be seen people aren't afraid to shop around for the best price/quality.

I can tell you my store, barely scrapes in a profit because the vast majority of the main profit is pumped back into the local economy with community projects etc. Another local store of mine, paid for the redevelopment of the Town Centre that was a complete state (Gateshead), and whilst it may not be absolutely amazing, it's a lot better than what was there, and Tesco paid for it.

How many times in the past have we heard of Tesco riding rough-shod over the authorities in towns where they wanted to build yet another "Temple of Tesco Mammon" totally ignoring the views of residents and local councillors.

This latest news seems almost biblical in its connotations of seeing how the mighty have fallen...:roll:

Usually it's only a handful of residents who care, and obviously they get their opinion across thanks to the local media. It's also odd how when those stores that nobody wants finally do open they are always relatively busy!

This is the bit that really annoys me. The management and board overstretch themselves, and the staff have to take the hit.

To be fair, Dave Lewis, in a statement given to staff did say any staffing cuts would start at the top. Those in stores that are closing may be given the opportunity to move to another nearby store, however that will depend on circumstances.

I really like him, and he definitely seems to be a CEO who is there to support his staff, if he wasn't left with such a s**tty situation then I'd love to see what he would have done, and hopefully will do.

Nobody in my store seemed to be worried about their job, most people were just discussing the management structure and how changed it is and how much more change will happen.

 

[richw]

I don't think moving our HQ from the South East would be beneficial. If you want the top people then you need to be with other big businesses.

My employer moved the vast majority of functions from the SE to SW. Apparently massive savings, and they pay highly for the SW for staff salaries at a level that was too low for the SE.

Only senior management are left in a smaller office space in the SE now for convenience of being near to where they need to be for their roles.

Office space in Cornwall is also much cheaper.

 

[Crossover]

Morrisons are also opening, though - a huge new store by Milton Keynes Central (useful for rail passengers too) and an M Local just up the road from me.

I spotted that the other day when passing on the train - would have no doubt been useful in the time I was living down there - I did go to the other MK store on the odd occasion

Tesco has a defined-benefit pension scheme, one of the last left amongst retail companies, and is closing this to new employees. Tesco will, of course, have to set up an alternative pension scheme for them.

Presumably defined-contributions