Retailer Tesco will pull out of the United States
as part of a refocus on its British operations, the
Hertfordshire-based company announced Wednesday as it posted annual
figures showing a 13-per-cent drop in profits to 3.45 billion pounds
(5.27 billion dollars).
The decision to pull the plug on its Fresh and Easy Chain - which
operates 199 stores in the states of California, Nevada and Arizona -
is a natural consequence of "the strategic changes we first began
over a year ago," said chief executive Philip Clarke.
The goal is to "build a better Tesco" in Britain, said the
company, which also cited difficulties with its holdings in South
Korea and Europe.
The company said an unnamed third party had expressed interest in
purchasing Fresh and Easy. Tesco stands to lose 1.2 billion pounds as
a result of its US exit, mostly due to losses on properties and
leases.
Tesco also noted it had already pulled out of Japanese operations
this year and was taking a "more measured" approach to business in
China.
The company said it would take a 804-million-pound loss by selling
more than 100 sites it had purchased and never developed, in line
with previously announced plans to reduce growth in stores in
Britain. It noted that many of the properties now on sale had been
purchased at higher points in the property cycle.
"We have set the business on the right track to deliver realistic,
sustainable and attractive returns and long-term growth for
shareholders," said Clarke. "Our focus is now on disciplined and
targeted investment in those markets with significant growth
potential and the opportunity to deliver strong returns."
Wednesday's figures were based on data from the week ending
February 23.
Tesco employs more than 620,000 people worldwide in 6,784 stores.
Overall revenue for 2012/13 stands at 72.4 billion pounds, a
1.3-per-cent increase over the year before.
