Britain’s biggest retailer, supermarket group Tesco, said Friday it was selling its Turkish business as its worldwide arm focuses on its operations in Central Europe and Southeast Asia.
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The sale includes 54 standalone restaurants and three that sit inside Tesco stores.
Giraffe is to be be taken over by Boparan Holdings, the owner of the Harry Ramsden’s chain.
The U.K.’s number one grocer by market share is selling its 95.5% interest in Kipa to Turkish grocer Migros for around 30 million pounds ($43.4 million). He is reportedly also looking for buyers for coffee chain Harris + Hoole and Dobbies, its garden centres business.
Tesco (TSCO.L) has agreed the sale of its Turkish business and Giraffe restaurant chain in the United Kingdom as the country’s biggest retailer continues its reshaping under Chief Executive Dave Lewis.
Tesco chief executive Dave Lewis, who took over in 2014 to turn the retailer around, has been selling off a string of businesses, including its South Korean chain, to cut debts and focus on the core United Kingdom retail business.
“The sale of Kipa reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market”, Mr Lewis said.
He explained that it removed the need for the sustained investment required to enable the business to compete independently, and allowed Tesco to focus on improving profitability in Central Europe and grow operations in South East Asia.
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In April, Tesco reported its first rise in underlying operating profit in four years and its first quarter of underlying United Kingdom sales growth for more than three years. The sale of the business means that the focus can be on the other parts of the worldwide business’.
