Tesco exiting the US would represent “corporate vandalism”, the City has said.

Shore Capital analyst Clive Black has said Tesco investors should show patience to allow the grocer to achieve its goal of making its Fresh & Easy business profitable and organise its banking business.

Major Tesco shareholder Legal & General last week that Tesco should reconsider its US venture as it is yet to break even.

Black said: “There is value in these ventures that needs patience to extract; to exit now would represent corporate vandalism to our minds. However, loyal investors should be rewarded for their goodwill and patience, with consideration of separate London and New York listings by 2017.”

Black believes Tesco should cut its annual UK capital expenditure by between £500-700m a year and said chief executive Philip Clarke has between six and 12 months to assuage concerns over the UK business.

He said: “Tesco UK needs to be interesting and fun, which leaves no place for arrogance and corporate deafness.”

Clarke will deliver his strategy for Tesco’s UK business at the retailer’s full-year results next Wednesday.