Supermarkets group Tesco PLC (LON:TSCO) has continued to simplify its business, even as it works to take over cash and carry wholesaler Booker PLC (LON:BOK), with the sale today of its opticians business in the UK and Republic of Ireland to Vision Express a week after unveiling full-year results.
Tesco Opticians currently operates in 206 of the retail giant’s stores across the UK and three stores in the Republic of Ireland, as well as online, and employs approximately 1,500 staff.
Vision Express will continue to run the shops as concessions within Tesco stores.
READ: Tesco slumps despite better than expected results …
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Vision Express claims to be the third largest optician in the UK, while its parent company, GrandVision operates more than 6,000 stores in 44 countries.
Tesco said the disposal is subject to regulatory approval by the Competition and Markets Authority in the UK.
Commenting on the move, Matt Davies, Tesco’s CEO for the UK and Ireland, said: "This allows us to further simplify and strengthen our UK business and ensures our customers are still able to enjoy high quality eye care services from Vision Express in our larger stores.”
Non-core moves …
Tesco has been gradually selling off non-core operations since group chief executive Dave Lewis took over in the wake of a shock accounting scandal at the supermarket giant in 2014.
However, in a bold move at the end of January, Tesco surprised the market with an agreed £3.7bn offer for Budgen’s owner Booker, a shopping trip which some big name investors are still yet to be convinced about.
READ: Tesco committed to Booker merger despite opposition …
Last week, Tesco reported better than expected results for the year to 25 February 2017, with underlying profits rising to £1.28bn, up 30% on a year earlier and ahead of the £1.2bn City analysts had predicted.
However, pre-tax profit fell to £145mln, down from £202mln in 2016, although this was due to the £235mln hit it took following an agreement with the Serious Fraud Office and Financial Conduct Authority relating to the 2014 accounting scandal.
But investors were more concerned about the retailers ballooning pension deficit and issues over margin deterioration caused by a return of food price inflation, sending Tesco shares sharply lower on the day.
In late morning trading today, Tesco shares edged 0.3%, or 0.5p higher to 176.7p.