Tesco drops cars and handymen

The group said it had decided to impound Tesco Cars, a joint online venture with Carsite, after it failed to secure a decent supply of cars.

Tesco Cars aimed to advertise up to 3,000 cars a week when it was launched in April last year but reports suggested that at the end of last year it was selling only 150 vehicles a month.

Tesco has also decided not to proceed with handyman business Tesco Home Services after a trial.

The closure comes at an uncertain time for the UK’s biggest supermarket as chief executive Philip Clarke prepares to reveal his turnaround strategy following a shock profit warning, a share price slide and the departure of UK boss Richard Brasher.

Mr Clarke has admitted Christmas was disappointing after its Big Price Drop campaign flopped, prompting a near £5bn slump in its market value. He plans to cram a three-year overhaul into the next 12 months, including a raft of initiatives dealing with online, price and home delivery.