Pundits believe Dobbies could be on Tesco sell-off agenda
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Tesco’s disappointing second quarter results and surrounding issues have refuelled speculation in the city and the financial press that the group could sell off Dobbies Garden Centres. It could be one a number of peripheral operations earmarked for the chop by the supermarket giant in a bid to turn around its fortunes. Tesco have so far declined to comment on any of them, but Dobbies has been mentioned by a number of retail analysts during the past week. New chief executive Dave Lewis may consider Dobbies too peripheral to the core food business on which Tesco ultimately depends. However, some believe that garden products and grocery go well together. After all, Waitrose are making a success of it. Unsurprisingly, with the prospect of juicy bait in the water, analysts have been quick to name Terra Firma, owners of Wyevale Garden Centres, as the nearest predator. Others remind us that, despite its current troubles, Tesco is still the UKs most profitable supermarket and has shown legendary resilience over many decades.
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