Tesco Says Bank Delays to Hurt Profit Amid Weaker U.K. Sales
This article is for subscribers only.
Tesco Plc, the U.K.’s largest supermarket chain, said delays to banking products will reduce profit by 40 million pounds ($61 million) this year, adding to the grocer’s struggle to revive growth in its domestic market.
The retailer is deferring the introduction of mortgages until 2012 and slowing a switchover to new information systems following the end of a tie-up with Royal Bank of Scotland Group Plc, the Cheshunt, England-based grocer said today. Tesco also reported a 0.7 percent drop in second-quarter U.K. same-store stores, excluding gasoline and value-added tax, the worst performance in at least six years.