Tesco has announced plans to sell its coffee business just as it posted a second consecutive quarter of sales growth in the UK.
The news comes as Tesco continues its recovery under chief executive Dave Lewis, who is slimming down the business to focus on its UK supermarket trading and reversing the expansion of the retail giant that occurred under previous management.
Like-for-like sales in the first quarter of the year rose 0.3% after a 0.9% rise in the previous period.
This is the first time in over five years that Tesco has reported two back-to-back quarters of sales growth.
Plans to sell its Harris + Hoole coffee chain to Caffe Nero are the latest in a series of Tesco’s non-core business sell-offs, which include gardening chain Dobbies, restaurant chain Giraffe and Turkish supermarket Kipa.
Lewis said he was encouraged by the progress across the company.
"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,” he said.
“By growing volumes, transforming the way we work together with our suppliers, and further optimising our store operating model we are rebuilding profitability in a sustainable way.
"I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders."