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Tesco to sell coffee chain Harris+Hoole to focus on UK grocery business

RBR Staff Writer Published 24 June 2016

UK supermarket giant Tesco has agreed to sell its coffee-shop chain Harris+Hoole to Caffe Nero Group in a bid to focus on its core grocery business in the country.

grocery

A total of 42 Harris & Hoole outlets, including 31 inside Tesco stores, are being acquired by rival Caffe Nero for undisclosed amount, reported Bloomberg.

Meanwhile, Tesco also reported positive like-for-like sales growth for a second consecutive quarter.

The retailer's like-for-like sales grew by 0.9% for the 13 weeks to 28 May 2016, with positive like-for-like sales growth in all the regions it operates.

Tesco CEO Dave Lewis said: "In both the UK and Internationally, we are putting customers at the centre of everything we do and re-configuring our business to serve them a little better every day.

"Our new fresh food brands are performing very well, with over two-thirds of our customers having bought products from the new range."

Recently, Tesco sold its Dobbies Garden Centers business to an investor group led by Midlothian Capital Partners and Hattington Capital, for £217m. Proceeds from the same will be used by the firm for general corporate purposes.

Acquired by Tesco in 2007, the Dobbies Garden Centers is claimed to be the UK's second largest garden centre retailer. It operates 35 garden centers across Scotland, England and Northern Ireland.

Earlier, Tesco also sold Turkish supermarket chain Kipa and the Giraffe UK restaurant chain to focus on its core business.

Tesco now plans to complete the integration of the customer websites for Tesco Direct and F&F in order to streamline the customer experience across mix of formats and channels.

Lewis added: "By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way."

Tesco said that its launch of seven new exclusive fresh food brands in the UK in March has helped to meet more customers' demands.


Image: Tesco plans to focus on grocery business in UK. Photo: courtesy of Tesco Stores Ltd.