Tchibo, the German coffee and variety retailer, is to review its UK business.

It is thought to be scaling down its UK operation and is considering closing all of its 50 UK stores.

It has a concession agreement in some Sainsbury’s stores which it will not continue when the contract ends next year.

Last year it decided to concentrate on its larger stores and close smaller stores but it will now review all its stores in the country in light of tough trading.