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Tesco finance group plans to take on banks
28.07.08
Tesco is to set itself up as a major financial institution to take on the likes of High Street banks.
The nation's biggest grocer - responsible for 31p in every £1 spent in UK supermarkets - today spent £950 million buying out Royal Bank of Scotland from its 50% partnership in Tesco's ownbrand financial products.
A new Tesco Personal Finance Group will pool all the chain's banking, credit cards, insurance and cash-machine interests. Tesco's aim, it says, is to grow profit from all its "services", including mobile phones and internet shopping, from £400 million a year to £1 billion.
