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Why is Tesco sticking its neck out with Giraffe?

Outlook

Jim Armitage
Tuesday 23 June 2015 20:43 EDT
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Questions, questions for Tesco’s shareholder meeting on Friday. When will the turnaround be complete? How’s the sale of Dunnhumby and its South Korea operation going? What’s the latest on the fraud inquiry?

But Shore Capital raised a different one: why on earth does Tesco still own Giraffe restaurants? In a supermarket chain that’s offloading “non-core assets”, this overpriced mid-market chain looks as out of place as – well, a giraffe.

It’s small beer, sure, but private equity groups are standing at the ready, hungry to help Tesco chief Dave Lewis reverse one of the former regime’s dopiest investments.

He should appoint advisers now and send this not-so exotic beast off to market.

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