Tesco plans store closures and cancels dividend; appoints new UK CEO

Beleaguered supermarket Tesco is planning a cost-cutting drive which will see it cancel its full-year dividend, close stores, and appoint a new UK CEO in a bid to reverse its fortunes.

Shares in the group jumped more than 6% this morning after the retailer said it plans to save £1bn in capital expenditure in 2015/16, and will not pay a final dividend for 2014/15. By restructuring its central overheads, simplifying store management structures and increasing working-hour flexibility, the group hopes to deliver savings of around £250m per year at a one-off cost of £300m. It will also close 43 unprofitable stores, and will close its Cheshunt head office in 2016, making Welwyn Garden City the UK and group centre. It will also sell its Tesco Broadband and its online vi...