TWO Tesco shops planned for Colchester will still go ahead in spite of the company announcing its intention to save £804million to offset its losses.

As part of the savings drive, Tesco has ear-marked more than 100 UK sites bought mainly during the property boom, which it no longer plans to develop.

But plans for a Tesco Express, in Blackheath, and a Tesco Extra, in Butt Road, will still go ahead, although no timescale has been put forward by the supermarket giant.

A Tesco spokesman said: “In both cases in Colchester, we want to continue.

“They are unaffected by the company’s announcement.

“As yet, we cannot give out a detailed timeline but, it is our intention to push ahead.”

The third-largest supermarket group in the world also announced it would be pulling out of America and China yesterday.