Tesco to Sell Coffee Chain Harris + Hoole

LONDON—Tesco PLC on Thursday reported a rise in group same-store sales for the first three months of fiscal 2017 and said that it will sell coffee chain Harris + Hoole to Caffe Nero Group Ltd., as part of its plan to put greater focus on its core U.K. grocery business.

The U.K.'s No. 1 grocer by market share said group like-for-like sales for the 13 weeks ended May 28 rose 0.9%, compared with a 1.3% sales drop reported for the same period a year earlier. Same-store sales for the company's core U.K. division increased 0.3%, compared with a 1.3% year-earlier drop.

"We have delivered a second quarter of positive like-for-like sales growth across all parts of the group in what remains a challenging market with sustained deflation," Chief Executive Dave Lewis said.

"By growing volumes, transforming the way we work together with our suppliers, and further optimizing our store operating model we are rebuilding profitability in a sustainable way," Mr. Lewis added.

Tesco didn't disclose any financial information in relation to the sale of Harris + Hoole. Earlier this month, it sold its Dobbies Garden Centers business, Turkish supermarket chain Kipa and the Giraffe U.K. restaurant chain to focus on its core business.

Write to Tapan Panchal at [e-mail]

(END) Dow Jones Newswires

June 23, 2016 15:15 ET (19:15 GMT)

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