MANCHESTER, U.K. - In a bid to cut costs and boost its profit margins, supermarket chain Tesco is said to be planning to shut a raft of city centre stores in the U.K.
Tesco's move, believed to be aimed at dealing with the poorly performing Metro stores, will reportedly see the chain shutting up to 30 underperforming Metro stores.
Further, reports revealed that the company is also planning to convert about 60 additional stores that are performing badly, into its new discount format called Jack's.
The move was feared to put thousands of jobs at risk.
However, the company has not confirmed the closures, but has disputed the figures quoted in reports.
A report in The Times noted that Tesco had already alerted its staff at Metro outlets in parts of Lancashire, Manchester and Liverpool that their stores will be closing.
The report comes in light of previously reported plans by Tesco chief executive Dave Lewis, who is believed to be on a cost cutting drive which is aimed at boosting the company's profit margins.
Since joining the company in 2014, Lewis has not only slashed thousands of jobs, but has also set a target of 3.5 percent to 4 percent by 2020, up from 2.9 percent last year.
Tesco's recent launch of its latest brand, Jack's - a new discount format, along with price cuts on its own-label products and rebranding of its Value range, have come as it battles rivals like Aldi and Lidl in the British market.