UK supermarket giant Tesco has announced plans to cut back on its international operations, with a particular focus on its US and Chinese markets. The firm’s decision comes after a series of profit warnings and a significant drop in share prices, prompting a strategic rethink. New CEO Dave Lewis has pledged to concentrate on the core UK business, which has been struggling amid fierce competition from discount retailers Aldi and Lidl.

In a bid to reduce costs, Tesco will sell its US-based Fresh & Easy chain and partner with a state-run company in China, effectively halving its presence in the country. This move is expected to save the company around £1bn a year. The firm also plans to sell off non-core businesses and assets, including its customer data unit, Dunnhumby.

Despite these challenges, Tesco remains the UK’s largest supermarket chain, with a 28.6% market share. However, this figure is down from a peak of 31.8% in 2007. The company’s new strategy is expected to be a long-term plan, with Lewis stating that the focus will be on improving the customer experience and regaining market share.

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