Tesco is to sell its coffee chain Harris + Hoole to Caffé Nero to focus on its core UK business.
The supermarket giant has been streamlining its operations, shedding assets including the Dobbies chain of garden centres, restaurant chain Giraffe and its Turkish business, Kipa.
Tesco said it was “encouraged” by its first quarter results, posting a 0.9% rise in group like-for-like sales and a 0.3% rise in the UK in the 13 weeks to 28 May.
Tesco chief executive Dave Lewis said results for the group were positive amid a “challenging market with sustained deflation”.
He added: “Our new fresh food brands are performing very well, with more than two-thirds of our customers having bought products from the new range.
“By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way.”
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