In terms of efficiency, falling store sales have an impact on the return on assets given that the same assets and so Tesco’s stores are generating fewer sales. This may be noted as a reason to the cut in capital expenditure, with Tesco looking to improve the efficiency of current assets before it spends adding more stores to its portfolio. This process has also been seen in 2015, with the retailer, along with Sainsbury’s both announcing job cuts and store closures.