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Tesco to quit Japan
Japan
Wednesday 31 August 2011
MD
Having failed to break into the Japanese market, Tesco has decided to sell its stores and focus on other Asian countries.
Tesco will start the process of selling its 129 stores in the Tokyo area.
After 8 years in Japan, only half of its stores are profitable and this year sales fell 6.4% in Q1. Tesco has decided to sell its Japanese stores that trade under Tsurakame, Tesco and Tesco Express. Japan constitutes the retailers smallest international division.
Tesco will sell its Japanese stores and focus on its other businesses in the region to stimulate growth and improve yields. Asia accounted for 16.8% of its sales last year. Tesco has stores in India, China, Thailand, Malaysia and South Korea's, which is the retail giant’s second largest market.
source : the guardian, bloomberg
