Supermarket giant outlines plans to raise growth, grow internet business, and acquire stores 'when appropriate'.
Tesco has set its sights firmly on the garden centre market after announcing to the Stock Exchange its intention to cancel its dividend to Dobbies shareholders and use cash generated from the business for ongoing store development.
'Given the company's expansion plans, it is the intention of the board that cash generated from operations will be used to fund future growth rather than be distributed to shareholders," it explained.
James Barnes chief executive added: "Our ambition is to raise the growth rate of the business in the coming years, through new site developments, by acquisitions as and when appropriate, and via our new internet business."
The announcement also revealed that Tesco will loan Dobbies £110m. The garden centre chain said it will use the funds to pay off debts of some £90m with the remainder allocated to store development.