Tesco to accelerate UK turnaround plan

LONDON Tue Feb 25, 2014 7:14am EST

LONDON Feb 25 (Reuters) - Britain's Tesco, the world's No. 3 retailer, is to accelerate a turnaround plan for its key home market, stepping-up the pace of large store revamps, growth in online and convenience channels and price cuts.

In a statement published ahead of an investor and analyst seminar later on Tuesday, the group also said it plans a further significant reduction in planned net new space growth.

It said this will mean group capital expenditure will be reduced to no more than 2.5 billion pounds ($4.2 billion) per year for at least the next three financial years.

In the 2012-13 year Tesco's group capital expenditure was 3 billion pounds, or 4.1 percent of sales, a reduction of 0.7 billion pounds on the previous year.