Supermarket Tesco is looking to expand its store development programme by +40% compared to last year, as projects are restarted.
The £1.6bn expansion will start this year, particularly focusing on major mixed-use developments. Tesco plans to build a total of 2.4m sq ft this year, a rise of +41% on the 2009’s below average of 1.7m sq ft. Six have already begun work, including two sites in south London.
These mixed-use schemes have changed somewhat since they were originally proposed. Over the past year Tesco has reworked them so they can be phased over a longer period in order to be more responsive to changes in the market. Building reported that several of these schemes have had the residential element reduced. Tesco cut part of its mixed-use development team at the start of 2009 as the recession bit into its expansion plans, causing it to review its commitment to city centre regeneration schemes.
Other supermarkets, including Morrisons and Sainsbury’s, have announced store expansion plans in recent weeks. It is also thought that Waitrose has been in talks about expanding its programme.