Tesco ditches three times as many developments as its rivals

A Tesco supermarket is pictured in north London, on August 29, 2014. British supermarket giant Tesco on Friday issued another profits warning and slashed its shareholder dividend by 75 percent, blaming challenging trade and high investment costs. AFP PHOTO/Leon Neal        (Photo credit should read LEON NEAL/AFP/Getty Images)

Tesco has abandoned three times as many new supermarket sites as all of its main competitors put together over the last five years, new research reveals.

The chain has ditched 62 development sites across the country since 2010 in an effort to manage costs in the business, according to figures compiled by Barbour ABI for The Telegraph.

The Tesco figure is considerably higher than the 49 original sites that chief executive Dave Lewis announced in January he was to discard, as part of his plans to revive the supermarket giant.

The number of abandoned stores is more than four times the highest figure of Tesco’s ‘Big Four’ rivals: Sainsbury’s has abandoned 13 supermarket sites; Morrisons four; and Asda just two over the same period – a total of 19 against Tesco’s 62, according to the report.

“It is indicative of the wider issues within Tesco that they are retrenching from some of their expansion plans,” stated Michael Dall, economist at ABI. “The Big Four have an advantage because of their size already, but as they shelve stores it provides an opportunity for Aldi and Lidl to move into new areas while they concentrate on other parts of the business.”

German discounters Aldi and Lidl have submitted 428 new build applications between them over the same time frame and have abandoned just four as they carry on expanding, said Dall.

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