Tesco sells coffee chain Harris + Hoole to Caffe Nero

Published 24.06.2016 00:20

Tesco PLC announced Thursday that it plans to sell the British coffee chain Harris + Hoole to British coffeehouse brand Caffe Nero, putting greater focus on its core grocery business in the U.K. and reversing its dramatic expansion in the retail business under the former management. The group, which is steadily increasing performance after some turbulent years, is in the process of selling Dobbies Garden Centers and restaurant chain Giraffe as well, while it sold its 95.5-percent controlling stake in Turkish business Kipa to rival group Migros for $43 million earlier this month.

However, Tesco did not reveal any financial information regarding the sale of Harris + Hoole, which has 43 shops and around 400 staff. Tesco first took a stake in the company three years ago before later taking full ownership.

The announcement was made right after Tesco reported a second successive quarter of sales growth for the first time in more than five years.

Tesco said sales in the U.K. rose 0.3 percent in the first quarter to the end of May. Although this was a slowdown compared to 0.9 percent growth in the first quarter, as soon as this announcement was made, Tesco's shares rose 1.5 percent in early trading on London Stock exchange.

Offloading businesses in recent months, Tesco boss Dave Lewis expressed that they are happy about the progress they are making in parallel with their latest business strategy, slimming down the business to enhance the profitability in the core business.

Tesco has also exited its various businesses in South Korea and the United States due to fierce competition abroad.

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