Bernstein Research has said that it believes Tesco's sale of its Kipa business in Turkey and Giraffe business in the UK will enable the retailer to focus on its core objectives better.
'Tesco was only a small player in Turkey and suffered from a highly competitive market,' Bernstein said of the sale. 'As a result, the main Tesco business had to support Tesco Kipa. The sale of the business means that the focus can be on the other parts of the International business.'
On Giraffe, it noted that the sale of the restaurant unit is unlikely to 'have a significant financial impact on the group'.
'While Turkey and Giraffe were a small part of the Tesco business from a financial point of view, there is a greater impact on the business through focussing management's attention on the core business,' Bernstein noted.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
