Every little doesn't always help: Tesco pulls out of US

[High Dyke]

http://www.bbc.co.uk/news/business-22179255

Tesco profits fall as supermarket pulls out of US

Tesco's annual profits have fallen for the first time in almost 20 years, as the UK's biggest supermarket confirmed it was pulling out of the US.

Tesco is winding up its US chain of 199 Fresh & Easy shops, which have never made a profit, at a cost of £1.2bn.


The company has also announced a one-off UK property write-down of £804m.


Statutory pre-tax profits were down 51% to £1.96bn, but post-tax profits including the cost of the US exit were just £120m, down 95.7%.


Tesco said sales at UK stores in the past three months, excluding fuel and VAT sales tax, rose 0.5%, a slowdown from growth of 1.8% in the six weeks to 5 January when the company hailed strong Christmas trading.


The world's third-largest supermarket group, which reported a shock profit warning in January last year, has been restructuring under chief executive Philip Clarke.


As well as the US withdrawal, Tesco is exiting Japan and said it would take "a more measured approach to our growth in China".

 

[pinguini]

On the otherhand they are very sucessful in South Korea

 

[gordonthemoron]

why didn't they just call themselves TESCO? From stuff I've read about the US operation, the food wasn't particularly fresh (a lot of ready meals) or easy (customers didn't like self checkout)

 

[hluraven]

They only made nearly £2 billion and this is seen as a negative?

 

[TheEdge]

It does say that is pre-tax but post tax was 'only' £120m, which for an organisation such as Tesco is fairly poor.