LONDON (AFP) -British supermarket giant Tesco launched cost-cutting plans Thursday to shut stores, sell assets and axe its dividend, in a bid to revive its fortunes and recover from an accounting scandal.
The nation’s biggest retailer announced the news in a gloomy statement which revealed sliding sales in the key Christmas trading period, as it continues to face fierce competition in its home market.
Tesco said it will close its head office, slash capital expenditure, shut 43 “unprofitable” shops and significantly revise its store building programme.
The group agreed to sell the Tesco Broadband internet arm and Blinkbox TV-streaming service to telecoms firm TalkTalk for an undisclosed amount. And Tesco cancelled a final-year shareholder dividend for the 2014/2015 financial year, adding it was exploring options to dispose of its Dunhumby data analytics business.
Tesco, which did not outline potential job losses, will overhaul central overheads to deliver £250 million ($377 million) of savings per year, at a one-off cost of £300 million.