The UK’s largest retailer also intends to close its defined benefits pensions scheme, sell of the analytics business behind Clubcard, Tesco Broadband and Blinkbox, and cut 30% of the retailer's overheads, which includes shutting down its Cheshunt headquarters.
The company is attempting to save £250 million in annual costs by restructuring store management and increasing working-hour flexibility.
Tesco could not confirm the number of staff affected by the closures, but it is understood the stores will be local convenience shops.
Tesco reported better than expected Christmas sales of 0.3% less than the same period in 2013. Overall sales in the three months to the start of January fell by 2.9%.
The company, which has more than 3,300 UK stores, has had a troubled past two years due to an accounting scandal, profit warnings and the senior management shake up.
“We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation,” Tesco CEO Dave Lewis said. “Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results.”
