Meanwhile, Tesco plans to expand its fast delivery range Whoosh to 800 stores by the end of this month.

First report Sky News cites people familiar with the matter as saying that British multinational grocery and general merchandise retailer Tesco (LON: TSCO) is considering selling its banking unit as the retailer plans to review its relationship with British banks. industry business.

Tesco explores sale of banking business

Tesco has reportedly begun a review that could affect its banking sector. However, the source confirmed that the review was at a preliminary stage and the possibility of a formal sale was pending. Another source said the British company may consider a partial sale or a partnership with another company. A banking analyst has put a value on Tesco Bank if the retailer eventually sells its bakery division. The financial institution could be worth more than £1 billion based on its book value, the analyst said. Notably, Tosco Bank has more than 5 million customers. These customers enjoy a variety of the bank's services, including pet insurance, credit cards and savings accounts.

While a number of companies across different sectors have laid off staff due to economic instability and fears of rising inflation, the report said there was no sign of Tesco cutting jobs as a result of the review.

“The bank’s balance sheet remains strong and we continue to have ample capital and liquidity to respond to changes in regulatory and funding requirements,” the UK retailer noted in its recent announcement.

Tesco Bank exited the UK mortgage market in 2019, divesting its UK residential portfolio to Lloyds Banking Group for £3.8bn, which also bought the Paperchase brand in January. That same month, it welcomed a new former HP enterprise services chief, Jacqui Ferguson. She takes on the role of interim chairman following the departure of a former Treasury official who chaired the bank from 2019 to January 2023.

Tesco’s retail business

Tesco plans to expand its fast delivery range Whoosh to 800 stores by the end of this month as its banking operations in the UK come under scrutiny, but the retailer has been working hard to meet the needs of its customers. The service launched in 2021 and has grown to 600 sites across the UK, with the latest target being to increase its current coverage by 200 sites in the coming weeks. Another recent effort by Tesco is a partnership with tech logistics company Stuart, with the British company working with Stuart to reduce delivery times and get to customers faster. Working together, more than 90% of Tesco's online orders via Whoosh are completed in less than 30 minutes. Additionally, 99% of the company’s orders placed through the service are delivered within one hour.