Tesco may drop store refit and expansion plans
UK retailer Tesco is in the midst of a cost cutting exercise that could see plans for new mezzanine floors shelved and store refits and extensions postponed, The Grocer reported. Tesco has already confirmed it plans to cut capital expenditure to under GBP4 billion (USD5.95 billion) in the next financial year. A Tesco spokesperson denied it would stop extending stores, saying it would be able to reduce capital expenditure as the cost of building materials fell. Meanwhile, Tesco is attempting to counter the effects of the weak pound on its Irish business, by sourcing more of its own-label lines bound for its Irish stores from British suppliers.
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