Tesco announced it will reduce new net space growth by 38% and spend £1bn revamping its existing estate in a preliminary results statement released this morning.
The supermarket giant reported a 1.6% rise in underlying pre-tax profits to £3.9bn for the year to February 25, 2012. Group sales went up 7.4% to £72bn.
A store refurbishment programme will start this year as part of a £1bn commitment to improve the Tesco shopping experience for customers. The programme will start with 430 stores, which will see warmer colours, better lighting and a stronger emphasis on fresh food. This includes around £400m of capital investment and will focus on service, store formats, pricing, range and rolling out click and collect.
However, the company said overall group capital expenditure would be lower this financial year, down from £3.8mn in 2011/12 to £3.3bn in 2012/13, mainly driven by the reduced new store opening programme in the UK.
This article has been paraphrased from Rachel Hunter's article in the Property Week. Subscribers can view the full article by clicking here
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