Tesco share price: Grocer inks wholesale deal with El Corte Ingles

Tesco (LON:TSCO) has inked a wholesale deal Spanish department store El Corte Ingles, the Guardian has reported. The deal will see the UK’s biggest grocer sell British favourites such as tea and biscuits in Spain.

Tesco’s share price lost ground in yesterday’s trading, shedding 1.54 percent to close at 156.80p, and underperforming the broader London market. The shares have lost nearly a third of their value over the past year, but are up nearly five percent in the year-to-date.
The Guardian reported yesterday that Tesco, which already wholesales its products in more than 20 overseas markets including India, will sell British favourites including teas, biscuits and cereals including granola in Spain via a deal with El Corte Ingles. In return, the UK group will expand a trial of El Corte Ingles products in its stores including sherry vinegar, sliced meats and extra virgin olive oil.

“We’re always looking to offer customers new and exciting products as part of our world food range,” Tesco said, as quoted by the Guardian. “We’re currently trialling products from El Corte Ingles in a small number of stores and are looking forward to seeing how customers respond.”
The FTSE 100 supermarket, which is recovering from an accounting scandal in 2014, is looking for new ways to expand abroad, after being forced to retreat from China, South Korea, Japan and the US.
The news comes after Tesco updated revealed last month that it had returned to profit in the financial year ending February following the prior-year’s record loss. The group’s new chief executive Dave Lewis, however, warned that market conditions remained challenging and would be “reflected in the pace of improvement in profitability in the current year, particularly in the first half”.
As of 08:10 BST, Tuesday, 10 May, Tesco PLC share price is 156.80p.