Tesco to sell off its retail division to Amazon
Tesco has said it will sell off some of its retail business and will focus on the Amazon Echo brand and ecommerce.
The news, first reported by the Financial Times, comes just days after the company said it was to shut down the entire UK operations of its electronics division in an effort to focus on its home appliances business.
Tesco’s statement came after Amazon said it would close all of its UK retail stores by the end of the year, including those in London, Manchester, Liverpool, Birmingham, Glasgow and Manchester.
Amazon said that it would open all of those stores to Amazon Prime customers.
“As part of its commitment to investing in UK operations, Amazon has been actively seeking to accelerate our plans to transform its entire retail business,” the company’s chief executive officer Andrew Williams said in a statement.
“We are committed to investing, in the UK, to ensure that our retail businesses can grow and thrive and continue to meet the needs of our customers, employees and communities across the UK.”
The statement did not say when or where Amazon plans to close its UK operations.
Tesca said that the company would focus on making the Amazon product experience as good as possible for customers.
Amazon will focus its attention on making it easy for customers to shop with Amazon Prime, which is offered through a range of devices including TVs, computers and tablets, and the Echo speaker.
Tescotoday Tesco will also sell off the retail division of its ecommerce business to Amazon.
Tescas statement did mention that it was closing the ecommerce division in the US, saying that the UK will not be affected.
Tescademy Tesco is also looking to focus its efforts on its own digital media offerings, as it said it is closing its US operations.
“It’s a great time to be an online retailer,” Mr Williams said.
“The opportunities for the company are huge, and our customers and partners will benefit from our strong brand and compelling ecommerce platforms.”
Mr Williams also said that Amazon had agreed to invest more than $US40 million ($65m) in Tesco over the next three years to improve its retail strategy.
“Amazon is the leader in the digital market and has a long history of delivering great value to its customers,” he said.