Meanwhile, Tesco plans to expand its Whoosh express delivery series to 800 stores by the end of the month.
British multinational grocery and general merchandise retailer Tesco (LON: TSCO) is considering selling its banking business arm. This comes as the retailer plans to review its presence in the banking sector in the UK. matter came first reported by Sky News, which cited people familiar with the matter as sources.
Tesco explores sale of banking unit
According to the report, Tesco has launched a review that may affect the banking unit. However, the source confirmed that the review is in the preliminary stage and the option of a formal sale is out. Another source said the UK company could consider a partial sale or collaborate with another company. A banking analyst has valued Tesco Bank if the retailer eventually sells its bakery division. The analyst said the financial institution could be worth more than £1bn based on its book value. It should be noted that the Tosco bank has more than five million customers. These customers enjoy the bank’s various services, including pet insurance, credit cards, and savings accounts.
While many companies across different sectors are laying off workers due to economic instability and fears of higher inflation, the report says there are no suggestions that Tesco may cut jobs due to the review. The UK retailer noted in a recent announcement:
“The bank’s balance sheet remains strong and we continue to have sufficient capital and liquidity to absorb changes in funding and regulatory requirements.”
In 2019, Tesco’s branch bank withdrew from the UK mortgage market and sold its UK residential portfolio to Lloyds Banking Group for £3.8bn in consideration. The company also bought the Paperchase brand in January. The same month, he welcomed a new former HP Enterprise Services executive, Jacqui Ferguson. She assumed duties as interim president after the departure of the former Treasury commander, who presided over the bank between 2019 and January 2023.
Tesco retail business
While its UK banking presence is under review, the retailer is constantly striving to satisfy its consumers. Tesco plans to expand its Whoosh express delivery series to 800 stores by the end of the month. The service, launched in 2021, has grown to 600 sites in the UK. The latest goal is to add 200 locations to your current reach in the next few weeks. Another effort that Tesco made recently was its partnership with the tech logistics company Stuart. The UK company collaborated with Stuart to reduce their lead time and reach customers faster. As a result of working together, more than 90% of Tesco’s online orders through Whoosh are completed in less than 30 minutes. In addition, the company delivers 99% of orders placed through the service within an hour.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
