Will Tesco Carry On with Barrack Road Development?
The latest news from Tesco the largest retailer in the UK that the shareholders are demanding a change in culture and strategy of the group to boost the company’s performance looks as if it might have an impact on the future development of stores.
It is amazing that after 20 years of year on year success and expansion Tesco in January found themselves in the position of having to issue its first profit warning with the new Chairman promising to deliver improvements in the next year.
The problem for Tesco following on from the criticism they faced over their involvement in the Governments job scheme is that some of the top shareholders believe that the culture of the organisation isn’t what you would expect from a world-class business and that even though there has been great expansion the organisation there hasn’t been a clear strategy into the future.
With organisations and shareholders like Invesco Perpetual having sold its whole portfolio of shares after the profit warning the need to change the organisational strategy is becoming even more urgent.
The latest statements from Mr Clarke, the new Chief Executive is expected to be saying that the new strategy will include cutting back on the number of new stores and especially those over 50,000 square feet and instead invest in improving the current stores.
What it means for the proposals to convert the former barrack Road Post Office into a major store we don’t know but with two very busy stores at Mereway and Weston Favell there must be the possibility that the Barrack Road development will be put on hold and if so what impact will it have on the overall Northampton Town Centre strategy and regeneration.
If it turns out that the proposals are cancelled altogether it will bring into question once again what will be developed on the site.
It is an issue that may well have a serious impact on Northampton and the Conservative administration at the Guildhall should be asking Tesco if their plans for the development of Barrack Road have changed as part of the cultural changes proposed.