Tesco Exits U.S. After First Profit Drop in About 20 Yrs

Tesco Plc, the U.K.’s largest retailer, said it will exit the U.S. and scale back domestic expansion at a cost of about 2 billion pounds ($3 billion) as it reported the first annual profit drop in almost 20 years.

Dumping the U.S. Fresh & Easy chain after about six years cut profit by 1.2 billion pounds, the Cheshunt, England-based supermarket company said today. Tesco also took an 804 million-pound charge to write down the value of property held for development as it opens fewer new stores at home, and announced charges in both its European and financial-services units.