Exclusive: Tesco to axe international wholesale business

Retail Week can reveal that Tesco has today begun the process of winding down its international export arm with the intention of closing the business completely by the middle of next year. 

Tesco said the business “performed well” in 2020 but after a “thorough consideration of its scale and the future growth potential” it had made the decision to shut it down. The retailer wouldn’t break out the financial performance of the business.

Retail Week understands a small number of staff, in the tens, will be affected by the closure and that Tesco will look to redeploy those affected within the business. 

A spokeswoman denied that the decision to close the international wholesale arm was in any way connected to Tesco’s recent decision to sever its international purchasing agreement with French grocery giant Carrefour. 

Tesco’s international export business has been in operation for about a decade and exports the retailer’s own-brand products to 20 partners around the globe in countries such as Australia, Saudi Arabia and in Europe.  

The retailer’s group chief product officer Ashwin Prasad said: “I would like to say a big thank you to all our colleagues, suppliers and partners who have worked with us to export our own-brand products over the years, as well as the customers internationally that bought Tesco products.

“This was a difficult decision to make, but we believe it’s the right one, and we are committed to supporting our partners through the transition period ahead.”