The
chain is currently going through a period of recovery after going
through a year which has been beset by high-profile departures, a
declining share price and profit warnings.
The
group still operates 200 stores within Hungary. It commenced
operations within the country during 1995 and has since grown to be
the third-biggest employer, with three million customers.
Large
retailers based in Hungary are set to face new legislation which
enforces the closure of chains showing losses for two consecutive
years. They are also facing increases in food inspection costs.
A
Tesco spokesperson said that the decision to shut down 13 stores has
been made in a bid to secure the long-term profitability and future
of their business for their customers and colleagues. The group
remains committed to their customers and business in Hungary and are
proud of their continued contribution to the economy of the country.
They look forward to continued service to their three million
customers via their existing stores.
Tesco’s
top priority is to work with people in the stores that are affected
and plan to do everything they can to find alternative employment
within the group for them.
Tesco
is set to close 43 UK stores which have become unprofitable. It is
planning to cut its capital expenditure by £1bn during its
cost-cutting period.
The
share price of Tesco remains fairly flat during this morning’s
trading and has grown a mere 0.45% after the release of this latest
news.
