Source close to supermarket chain cites performance issues as contractor 'works to regain position'

Supermarket giant Tesco has removed Kier from its main contractor framework, shrinking it from five to four companies.

The framework, which until recently was known as G5, was made up of Costain, Barr, RG Carter, Kier and Taylor Woodrow. These companies win the bulk of Tesco鈥檚 work and undertake its big mixed-use schemes.

But it has emerged that Kier has been taken off the framework, which has been renamed G4 as a result. A source close to Tesco cited performance issues.

A statement from Kier said that although it was still working for Tesco, it was no longer as part of the G5 framework: 鈥淲e are not currently included on the G5 but have been assured that this is under review and are working to regain our position.鈥

Kevin Grace, Tesco鈥檚 property services director, said: 鈥淲e monitor our relationships and as you would expect we make occasional changes; we simply wouldn鈥檛 be performing properly if we didn鈥檛 do this.鈥

The news comes during a period of flux in Tesco鈥檚 property division. In February, 黑洞社区 revealed that six directors in the property team, led by development director Tony Vasishta, had left the company.

Tesco has also faced criticism over its aggressive planning drive this year. Last week the Competition Commission was asked by the Office of Fair Trading to launch an investigation into the superstore鈥檚 acquisition of a Co-op store in Slough less than a mile from an existing Tesco store.

Earlier this month the chain released a report defending itself against another Competition Commission inquiry which suggested that local businesses were being threatened by the growth of 鈥淭esco towns鈥.

Also this week it was revealed that Sainsbury鈥檚 plans to invest 拢750m on expanding its land bank and refurbishing existing stores. A spokeswoman for Sainsbury鈥檚 declined to comment.

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