Tesco is set to exit its standalone furnishing stores after poor sales led it to review its estate.

The grocery giant is keen to exit leases on all of its 13 Home Plus stores and has been looking at options with property advisor Morgan Williams, according to The Times.

The retailer has already said it wants to leave Home Plus locations in Staines, Surrey and two stores Telford and is now thought to be exiting all of the stores.

The grocer first opened Home Plus stores in 2005. The stores, located in retail parks, just sell furniture and home furnishings.

The stores are said to still be trading profitably but are still behind Tesco’s profit targets. Tesco and Morgan Williams declined to comment.

Chief executive Philip Clarke admitted the retailer has too much out-of-town space and will be opening fewer large stores in the future.  

Jones Lang LaSalle director of foodstore investment Tom Edson told The Times: “For the last ten years Tesco really did push into the big-box, American-style out-of-town expansion but their growth has been so astronomical they have got to a place where if they keep expanding they will start to see cannibalisation of their own stores.”

The news comes as Asda revealed it is to open 25 new stores – including larger stores – creating 5,000 jobs.

The new openings will add more than over 600,000 sq ft of net selling space to Asda, through superstores, small format supermarkets and Asda Living shops.