Tesco has officially confirmed a significant round of store closures in 2025, affecting dozens of locations across the UK. This major restructuring effort is part of a broader move to streamline operations, reduce costs and refocus the retail strategy.
The closure of 43 stores will impact several store formats including Express, Metro, Superstores and Homeplus. The news has raised concerns among communities, employees, and industry observers.
Tesco’s decision reflects ongoing shifts in customer behaviour, competitive pressure and economic adjustments. Here is a breakdown of everything happening with Tesco store closures in 2025.
Why Has Tesco Decided to Shut Down 43 Stores this Year?
The decision to close stores in 2025 comes amid ongoing efforts to stabilise financial performance and rebuild investor confidence. After years of mixed results, Tesco has undertaken an aggressive cost-cutting programme.
Faltering Profit Margins and Shareholder Pressure
Following previous declines in sales and accounting missteps, Tesco’s leadership committed to reducing overheads by 30%. The company aims to save £250 million through various restructuring strategies including store closures and pension reform.
Underperformance and Location Viability
Many of the affected stores are deemed unprofitable due to falling foot traffic or operational inefficiencies. Smaller Express stores and certain Metro branches no longer align with Tesco’s evolving retail model.
Strategic Business Realignment
The closures are part of a broader realignment focusing on convenience, e-commerce, and high-performing urban centres. Tesco’s leadership has acknowledged that difficult decisions are necessary to safeguard the company’s long-term future.
Which Tesco Stores Are Closing? – Full List by Category and Location
Tesco’s 2025 closures span a variety of store types, impacting both urban and rural areas. The closure list includes Express, Metro, Superstore, and Homeplus branches.
Below is a breakdown of stores affected by format:
| Store Format | Location Count | Selected Locations |
| Tesco Express | 18 | Bearwood, Belvedere, Heaton Chapel, Sheffield Manor, York Road Hartlepool |
| Tesco Metro | 12 | Bicester, Caerphilly, Devizes, Runcorn, Woodseats |
| Tesco Superstore | 7 | Bedlington, Chatham, Doncaster, Kirkcaldy, Wrexham Doods Lane |
| Tesco Homeplus | 6 | Bristol Cribbs, Chelmsford, Chester, Southampton, Staines |
Each store’s closure reflects poor performance or market saturation, forming part of Tesco’s broader goal to exit low-margin locations.
What Are the Key Dates for Tesco’s Store Closures?
The closure process will unfold in stages, affecting different store formats at different times. Tesco has outlined the timeline for 2025 as follows:
- 15 March 2025: All Tesco Express and Homeplus stores scheduled to close.
- 4 April 2025: All Metro and Superstore branches on the closure list will be shut down.
Other important timeline points include:
- Staff consultations held weeks in advance of closure.
- Customers notified through in-store signage and online channels.
- Product transitions and final sales events conducted in the days prior to each closure.
The phased closure allows for operational adjustments and customer redirection to nearby branches or Tesco’s online platforms.
How Will Tesco Store Closures Affect Jobs and Staff?
An estimated 2,000 staff members will be impacted by Tesco’s restructuring. The company has said it will aim to redeploy affected employees wherever possible.
The following table summarises the employment impact:
| Store Format | Estimated Job Losses | Redeployment Possibility |
| Tesco Express | 700+ | Moderate |
| Tesco Metro | 500+ | Moderate |
| Superstore | 400+ | Higher |
| Homeplus | 300+ | Lower |
Tesco has initiated internal programs to support employee transition, including CV support, internal job fairs, and HR consultations.
While some staff may find roles at other locations, others will face redundancy and need to seek external opportunities.
Are Tesco Store Closures Influenced by Business Rate Reforms?
Tesco’s decision to close dozens of stores is not isolated from wider economic policy shifts, particularly business rate reforms. Planned increases in property-related taxes are making larger stores and older formats less viable.
The reforms aim to impose higher rates on businesses operating in high-value properties. As a result, several supermarkets, including Tesco, have reported that multiple locations have tipped into unprofitability. Larger stores are especially at risk due to their higher operational costs and tax burdens.
While some of Tesco’s newer and smaller sites are less affected, the reforms have significantly contributed to the financial reassessment of underperforming stores across the UK.
Is Tesco Planning Any New Store Openings Amid the Closures?
Despite the closures, Tesco has confirmed it will open 14 new stores in 2025. This includes 7 smaller convenience outlets, aligning with the company’s focus on agile, efficient retailing.
Planned Tesco Openings by Type:
| New Store Type | Number of Stores |
| Tesco Convenience | 7 |
| Tesco Express Urban | 4 |
| Tesco DotCom Hubs | 3 |
These new locations are strategically placed in high-demand urban areas and aim to serve changing consumer behaviour, particularly in busy city centres where convenience and speed are priorities.
This approach reflects a pivot towards smaller, more profitable stores over large-scale, underused retail spaces.
What Happened to Tesco’s Plans for Tesco Extra Store Expansion?
In earlier years, Tesco had ambitious plans to grow its Tesco Extra large-format stores. These stores combined grocery with non-food retail and offered a comprehensive customer experience. However, Tesco has revised its strategy.
Reasons for cancelling or delaying 49 Tesco Extra projects:
- Declining footfall in larger retail parks
- Increased maintenance and operational costs
- Shift in customer preference to smaller, quick-service models
- Rise in online shopping and reduced in-store browsing
Current focus includes:
- Redirecting capital investment
- Focusing on core store upgrades
- Enhancing Tesco Online and delivery services
Tesco Extra’s expansive format is increasingly incompatible with the fast-changing retail climate and consumer expectations, leading to its strategic deprioritisation.
How Are Tesco’s Main Competitors Adapting to the Same Pressures?
Other major supermarket chains are also responding to similar economic and regulatory pressures. Sainsbury’s has signalled that around 50 of its stores may become unprofitable under the proposed business rate hikes. Morrisons and Asda are reportedly even more vulnerable due to their heavier debt loads.
Lidl and Aldi, however, appear better positioned. Operating in smaller, lower-rate properties with leaner overheads, these discount supermarkets are largely shielded from the business rate reform impacts that larger competitors are facing.
The industry trend is clear: larger formats are struggling, while agile, discount, or convenience-led retailers are capturing market share.
Is Tesco Preparing for a More Digital Future in Grocery Retail?
Tesco is accelerating its digital transformation strategy as part of its broader restructuring plan. The rise in e-commerce grocery orders and customer preference for home delivery services has prompted significant investments.
- Increased budget allocation to dotcom services
- Development of micro-fulfilment centres
- Integration of app-based promotions and digital receipts
The shift toward digital aims to offer seamless service across both physical and online touchpoints. Tesco’s dotcom delivery and click-and-collect services are expected to fill the service gaps left by the closing physical stores. The future of Tesco appears firmly aligned with tech-driven, customer-centric retail.
Conclusion
Tesco’s 2025 store closures mark a pivotal moment in the retailer’s long-term strategy. While the decision to close 43 locations may seem drastic, it reflects necessary changes driven by evolving consumer behaviour, cost pressures and operational priorities.
With a balanced focus on new store openings, digital expansion and leaner store formats, Tesco is aiming to adapt to modern retail realities.
Although the closures will bring disruption to some communities and staff, the overarching goal is long-term stability and renewed growth in a competitive landscape.
FAQs About Tesco Store Closures
What’s the difference between Tesco Express, Metro, and Homeplus stores?
Tesco Express stores are small and tailored for quick buys, while Metro stores serve medium-sized high street locations. Homeplus stores offered non-food items like electronics and home goods.
Will Tesco still honour warranties and returns from closed stores?
Yes, customers can still return products and claim warranties through Tesco’s remaining branches and online support services.
Can customers in affected areas still access online grocery services?
Tesco’s online grocery services, including home delivery and click-and-collect, remain operational in all previously served areas.
Are other major retailers also facing similar closures?
Yes, chains like Sainsbury’s, Asda, and Morrisons are facing similar challenges due to business rate hikes and shifting market demands.
What help is available for employees made redundant by Tesco?
Tesco is offering internal redeployment, and external services like job centres and financial advice organisations are available for support.
How will local economies be affected by these closures?
The closures may impact local employment and reduce footfall in affected shopping areas, particularly in towns where Tesco was a key presence.
Is this the start of more closures in the future for Tesco or others?
Industry experts believe this may be the beginning of more closures, as supermarkets continue to adapt to economic and consumer changes.
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