Tesco confirms costly exit from United States

(Source: Reuters)

Supermarket Tesco has released preliminary results for 2012/3 (release). The firm's pre tax profits by 51.5 per cent to £1,960m and the release confirmed that the company will be leaving the United States, abandoning its Fresh & Easy brand, at a cost in excess of £1.2bn.

Philip Clarke, Tesco's chief executive, commented on the results:

We have set the business on the right track to deliver realistic, sustainable and attractive returns and long-term growth for shareholders. The consequences are non-cash write-offs relating to the United States, from which we today confirm our decision to exit, and for UK property investments which we will not pursue because of our fundamentally different approach to space.

We have also faced external challenges which have affected our performance, notably in Europe and Korea.