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Tesco announces price war as part of fight back

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Tesco store

Tesco store

Tesco store

TESCO has announced better Christmas sales than expected, with overall turnover over the holiday period down just 0.3pc compared with the year before.

But the supermarket giant said that it will be closing 43 unprofitable stores across the UK as well as its headquarters with more details on its plans for Ireland and Europe expected later today.

It also announced a price war cutting the cost of over 1,000 of its products in stores.

Shares in Tesco opened up over 5pc this morning on news of the fight-back and overhaul at the struggling retailer that had a terrible year in 2014 including an accounting scandal and series of profit warnings.

Like-for-like Christmas sales were down 5.5pc in Ireland.

A spokesperson said there were no plans for store closures here at the moment.

"We currently have no specific plans to make changes to our head office in the Republic of Ireland but.....we always we keep our structure and head count levels under review to ensure we’re operating efficiently and able to meet the needs of our customers.

"Also we have no plans to close any stores in the Republic of Ireland," she said.

The chain  has made 350 night staff redundant through a voluntary scheme as part of plans to reorganise shelf stacking in some of its Irish outlets.

The company has said that the redundancies followed a plan to "improve customer service" and have more workers on the shop floor during the day.

At present, Tesco employs around 15,000 people in Ireland. Of the 350 redundancies, 260 will be backfilled with shelf packing staff in the coming months who will work during the day. Approximately 90 positions will not be replaced.

In addition, around 400 suppliers are awaiting news of the company's plans for Ireland.

Company boss Dave Lewis said Tesco was "seeing the benefits of listening to our customers".

The company also announced today that it is selling its entertainment service Blinkbox and Tesco Broadband to TalkTalk.

 

Online Editors