Tesco swings the axe on stores and jobs amid fears of more to come

Around 2,000 jobs are under threat after chief executive Dave Lewis named the 43 unprofitable shops that would shut this spring as he bid to put Tesco back on its feet.

Lewis attempted to draw a line under store closures earlier this month when he revealed the planned closures. He indicated the 43 stores would be the only ones to shut, but said he would continually monitor underperforming stores.

Analysts believe it is “inevitable” more branches will be shuttered. Express c-stores and Homeplus general merchandise stores are expected to be in the firing line.

Kantar Retail insights director Bryan Roberts observed Tesco was paying the price for “eating its own lunch” after saturating the UK with Express stores that have cannibalised trade.

He said: “These closures are the most urgent in terms of shutting stores that are making little profit, but there will inevitably be more.

“There will be some natural attrition when Express and Homeplus leases come up for renewal. Tesco will just let them drop.”

Planet Retail analyst David Gray also believed further closures are likely to be on the cards.

He said: “Homeplus may not survive at all. It looks very bleak for them. It’s been under review for years.”

Eighteen Express, 12 Metro and seven superstores are closing, and half of the 12-strong Homeplus chain.

Tesco aims to deliver £250m of savings a year through initiatives including the store closures and a move from its Cheshunt headquarters.

Lewis said earlier today: “The decision to close the stores has been exceptionally difficult. I recognise it will affect hard working colleagues, customers and local communities.

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

A Tesco spokesman refused to comment on the likelihood of more shops shutting.