Tesco shares drop after Giraffe purchase

<p>Tesco’s purchase of Giraffe has seen its stocks fall.</p>

The share price of Tesco is down this afternoon (March 12th) after the supermarket chain announced it is to move into the family dining market.

At 15:40 GMT this afternoon, stocks were down by 5.25 points and now stand at 375.20, a drop of over one per cent on the start of the day's trading.

Tesco has announced it is spending tens of millions of pounds on the buyout of the Giraffe chain of restaurants and this has been described as a "bold gambit aimed at revitalising the supermarket operators' British business" by CSS Investments.

Earlier in the month, there was a jump for Tesco's stocks after the company won the backing of Shore Capital and Credit Suisse.

This saw the share price go up by three per cent a week ago and Shore gace the shares a 367p price target, while Credit Suisse upped its own to 430p.

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