Tesco has revealed a ‘strategic’ plan to slow the roll-out of Harris+Hoole and Euphorium sites, after it wrote down £82m over the joint investments.
Chief executive Dave Lewis told The Grocer, that the previous management’s decision to invest in the businesses was not the answer to Tesco’s much-needed turnaround.
It also said it would write down £116m relating to Dobbies and other UK businesses, and £630m due to its investment with China Resources Enterprise Ltd (CRE). These are part of a £878m blow to the supermarket’s finances, as it devalues the business assets.
Lewis told the publication: “Previous management - and they were quite right in some places - brought in things like Harris + Hoole but they are not a surrogate for availability, services, good prices and range.”
Tesco recently bought up the remaining Euphorium business, and now owns the bakery business in full.
In response to the news, Nick Tolley, co-founder and CEO of Harris+Hoole, said: “We’re incredibly proud of what Harris+Hoole has achieved in just three years, from a standing start to 46 stores across the South of England and a team of more than 500 people.
“Our business began with a burst of rapid expansion and we’re now in a phase of consolidation, to ensure we’re in the best position for long term success.”
The 46 stores include those in or adjacent to Tesco supermarkets.