Tesco has said it is to close two superstores in Belfast as well as a smaller express store in Ballymena as part of a major restructuring that will see 43 unprofitable stores across the UK shut down.
The troubled retail giant confirmed earlier this month that stores in the Republic would be spared after it announced plans to sell assets and cut costs to fun lower prices in-store as part of a plan to fight back from the biggest crisis in its 95-year history.
Tesco said on Wednesday that up to 2,000 people could lose their jobs when the group closes the unprofitable stores. They consist of 18 Express stores, 12 Metro stores, seven superstores and six Homeplus stores.
In the North, two Tesco Superstores on Cregagh Road and in Connswater, both in East Belfast, are to close, as is a smaller Express store in Ballymena.
A total of 167 jobs will be lost from the operations in Northern Ireland, the company said.
The Ballymena store, which is to close on March 15th, employs 16 people. The Connswater Metro and Cregagh Road Superstore, which are due to close on April 4th, employ 92 people and 59 people respectively.
The British multiple confirmed earlier this month that its plans to develop super-stores in Armagh and Carryduff would also no longer go ahead
Tesco Ireland said has previously said that no further redundancies were planned here as part of the restructuring, beyond a net 90 losses following a voluntary redundancy scheme for 350 night staff.
About 260 of these will be rehired for day-time work as Tesco looks to boost customer service, leaving a net loss in Ireland of 90 jobs.
In addition, Tesco’s Irish unit, which will comprise 149 stores by next month, is to be joined to the British operation, having previously been part of its European division.
Seeking to recover from four profit warnings and an accounting scandal last year, Tesco's new chief executive Dave Lewis unveiled his master plan at the start of the year alongside figures showing a marked improvement in trading.
Like-for-like sales at Christmas were down 0.5 per cent, compared with a 4.4 per cent fall in the previous three months. In Ireland, sales over Christmas fell 5.5 per cent.
The group said it would reduce its capital expenditure for next year to £1 billion, from up to £2.1 billion this year.
It will also explore the sale of its Dunnhumby data business, not pay a final dividend and may close its defined benefit pension scheme in the UK.
“The decision to close the stores has been exceptionally difficult to take. I recognise it will affect many hard working colleagues, our customers and local communities,” said Mr Lewis in a statement.
Added reporting: Reuters
