Tesco to trial earlier closures for Express stores amid £235 million staff cost surge following tax changes. The supermarket will close some locations at 10 PM instead of 11 PM, impacting staffing levels. Following Rachel Reeves’ tax raid in April, Tesco’s chief executive, Ken Murphy, acknowledged the pressure to adjust operations to mitigate a significant rise in National Insurance contributions. The change aims to enhance efficiency while maintaining customer service quality. Tesco has also warned of a potential 14% profit drop this year but plans a £400 million investment in price cuts to support customers.
FAQ
1. Why is Tesco closing some Express stores earlier?
Tesco is closing some Express stores an hour earlier, at 10 PM, due to a £235 million rise in staffing costs following a tax increase from Rachel Reeves’ tax raid.
2. What changes are being made to Tesco’s staffing?
The supermarket is expected to have fewer staff working in its Express stores during the new operational hours, as part of a trial to increase efficiency.
3. When did the tax changes take effect?
The tax changes resulting in increased staffing costs took effect in April 2025.
4. What financial impact is Tesco facing this year?
Tesco warned of a potential 14% drop in profits for the year while planning a £400 million investment in price cuts to aid customers.
