Tesco has abandoned plans to open a new Express store on Washway Road – despite it having spent hundreds of thousands renovating the building.
We first reported that the future of the store could be in doubt when the troubled retailer launched a review of its entire store portfolio in January.
It had been thought that Tesco’s larger stores were most at risk – but it’s been confirmed to us today that the 2,426 sq ft corner store will not now be opening.
A Tesco spokesperson said: “We have reviewed our proposals and made the difficult decision not to proceed with plans for the new store.
“We’re very grateful to everyone who supported our proposals and will continue to work hard to serve the Sale and Altrincham community from our other stores in the area.”
Below: A recently opened Tesco Express in London
Tesco’s plans for the site had been approved by Trafford Council last summer, with an initial intention to complete a six-figure renovation of the former American Golf Discount site by the end of October.
Construction work continued until December however before new chief executive Dave Lewis put all development work on hold while he conducted a critical review of operations.
It’s understood that as a result of the review, the budget for new stores has been severely reduced while the retailer enacts a turnaround plan to combat falling market share and sliding profits.
Extracating itself from the Washway Road store will not be straightforward however – the retailer signed a 20-year lease agreement on the building, at an initial rent of £54,000 per year, with a break clause after 10 years.
Tesco is planning to work with the landlord to ensure the unit is transferred to an alternative tenant as soon as possible.
Below: Where the Tesco Express was due to open
