Tesco will today outline plans to cut back its investment in new space to no more than £2.5bn a year for the next three years.

The move, which represents a further reduction in planned net new space growth after last year’s £804m property writedown, will be set out this afternoon by chief executive Philip Clarke to investors and analysts.

Tesco will focus its future investment on its online and convenience arms and on an accelerated refresh programme for its larger stores.

The presentation, entitled  ‘Winning in the new era of retail’, will explain how Tesco intends to build a market leading multichannel proposition and pursue “disciplined international growth” after high profile exits from Japan and the US.

Clarke, flanked by UK managing director Chris Bush, group multichannel director Robin Terrell and finance boss Laurie McIlwee, will describe how Tesco is accelerating growth in new channels and investing in sharper prices, improved quality, stronger ranges and better service.

Tesco said: “Tesco will describe to investors how ‘Winning in the new era of retail’ is about putting the customer first and how by delivering the most compelling offer across all channels, it is focusing on increasing loyalty and improving sales, leading to sustainable profits and returns over the medium term, consistent with its financial guiderails.”

Clarke is also expected to address Tesco’s profit margin. The retailer had previously kept its margin at 5.2% but Clarke is expected to make this figure more flexible.