Tesco to swap contractors for store construction

Grant Prior 13 years ago
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A raft of new contractors is expected to benefit from Tesco’s plan to spend £1.6bn on new store building and refurbishment this year.

The retail giant announced capital spending plans during its preliminary results presentation today.

Store spending will increase slightly to £1.6bn from £1.5bn last year. But the extra investment is expected to coincide with a reshuffle of Tesco’s construction partners.

The Enquirer understands that Tesco has been holding a series of intense negotiations with current framework contractors and firms looking to become preferred suppliers.

One contracting director said: “Everyone knows that Tesco is a tough negotiator and they are constantly looking to get the best value from their suppliers.”

It is believed that Tesco will announce new construction framework partners shortly while some existing partners could be replaced.

In January it was revealed that Kier had left the retail store framework while the performance of other contractors was being closely scrutinised.

The source said: “Talks are going on at the moment but Tesco likes to do this sort of thing in private so all parties have been sworn to secrecy.”

A Tesco statement said: “Through the experience and expertise of our property teams we have developed over a number of years a good pipeline of new space opportunities.

“As a result we have the opportunity to unwind some of the work-in-progress we have built up and will be stepping up the rate of expansion in 2010/11.

“We will be investing £1.6 billion of capital in the UK economy this year and will create thousands of jobs including for the long-term unemployed through our regeneration partnerships.”

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