View more on these topics

Tesco confirms DB pension scheme closure

Tesco has confirmed plans to close its defined benefit pension scheme and one of its head offices as part of wider measures to reduce annual costs by up to £250m.

The retailer announced in a trading statement to the London Stock Exchange that it will shut its company DB scheme for all employees following a consultation period. 

The supermarket will also combine its two head office locations into one, with its Cheshunt base to close by 2016. The company will then be headquartered in its UK and group centre based in Welwyn Garden City.

In a further cost-cutting exercise Tesco will not pay out a final dividend to shareholders for the financial year 2014/15.

Further measures to boost performance include the closure of 43 unprofitable stores around the UK, increasing working-hour flexibility and introducing a turnaround-based bonus for all employees.

Tesco is also planning to dispose of its broadband and DVD rental services.

Overall, the retailer says it is making cost reductions of around £250m a year at a one-off cost of £300m.

Former Halfords Group chief executive Matt Davies has also been appointed as Tesco UK chief executive and will join the company on 1 June.

Tesco reported a 2.9 per cent decline in sales for the 19 week period to 3 January 2015, including Q4 2014 and the Christmas period.

Group sales worldwide fell 2.7 per cent over the same period, compared with the second quarter.

The supermarket is under investigation by the FCA after it overstated half-year profits by £250m. It has also faced falling sales in recent months.

Tesco chief executive Dave Lewis says: “We have some very difficult changes to make. I am conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of our situation.”

Recommended

Compliance tip of the week: Beware email scammers

We have taken a few calls recently from advisers regarding an email scam that appears to be doing the rounds. The hacker sends an email to the adviser, which appears to be from a client’s email account, requesting a withdrawal from their investment to raise monies urgently. They then send details of a bank account […]

Payment-Fine-Currency-Money-700.jpg
12

Footballers ‘lose £30m in investment scheme’

A hundred footballers are believed to have been caught in an alleged £30m investment scam. The Mirror reports that players said to have lost out include former Fulham midfielder Jimmy Bullard and Irish international Robbie Keane. Investors were promised returns of 20 per cent a month, but the scheme collapsed at the end of 2011 […]

DWP-Department-for-work-and-pensions-500x320.jpg

Businesses attack Govt over state pension rules delay

Businesses have attacked the Department for Work and Pensions for delaying publication of the final terms and conditions of the new single-tier state pension until after the general election. In April 2016 the current system will be replaced with a simplified single-tier pension, which will not include the earnings-related state pension top-up. Members of defined […]

FCA logo new 620x430.jpg
23

MM leader: FCA could open Pandora’s box on advice charges

As the head of a regulator funded by £446m of financial services firms’ money this year, a third of which came from advice firms, FCA chief executive Martin Wheatley is a man advisers probably love to hate. Money Marketing first interviewed Wheatley back in October 2012. Pre-RDR, his focus was on creating a “utopia” where […]

Rise of the machines

Head of Sustainable Investing at Royal London Asset Management, Mike Fox, looks at the case for including artificial intelligence within a sustainable investment strategy. Read the article in full here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Every little helps!

Leave a comment