The Restructuring of Tesco

One of the UK’s largest supermarkets, that being Tesco really have been going through the mill in the last couple of years, and with profits down and some scandals over how they reported profits becoming public knowledge recently, then you may have been put of placing Binary Options trades on this retailer.

However, with a new man in charge Tesco has been given something of a new lease of life, with proposed new outlets being put on ice and a range of discounts the green shoots or recovery are certainly beginning to show, and you should once again consider placing a few well throughout trades on Tesco if you are looking for some ideas as to which trades you should place in the very near future.

In fact yesterday it was announced that Tesco would be pulling out of South Korea, for quite a number of years now Tesco have operated a chain of Home Plus retail outlets throughout South Korea, however with them know looking to shore up and keep their UK operation as their main source of income it was decided that Home Plus must go.

This news did surprise a lot of traders, for unlike their UK operation their South Korean operation has been performing very well, however Tesco has been looking to amass up to £4 billion and one way that has now been achieved was by selling of that South Korea chain of supermarkets.

The main reasons for letting Home Plus go was that the Government in South Korea brought in rules that forced all retailers who are based and head quartered overseas to close their stores on two out of each four Sundays per month.

With a huge 10 hypermarkets and 609 supermarkets plus 326 smaller convenience stores based in South Korea that ban started to eat into their profits.

With the income now gone from that South Korean operation but the money raised from its sale the long term future of the UK operation of Tesco is beginning to look much brighter, more so if some of the changes the man at the top has begun to put into place starts to bear fruit.

The sale of Home Plus did not have any major effect on the current share price of Tesco but in the coming weeks and months we may start to see an increase in the share price as long as Tesco remains committed to getting things back firmly back track.