Tesco’s announcement that is it to close 43 unprofitable stores is a clear reflection of reality in a tough grocery market.
The short-to-medium-term market outlook is one of flat consumer demand, where online is growing and discounters are gaining share. It is surely necessary therefore that retailers like Tesco address the current surplus of space capacity in the market.
It seems only sensible that all retailers should regularly review loss making stores to focus investment on improving shopper experience and maintaining a keen price position. Of course it’s never ideal to close stores, but profit has to come before share.