By Isabella Steger
Tesco has finally announced details of its long-planned exit from Japan.
On Monday, the U.K. retailer said it struck a deal to sell half its operations in the country to Japanese retailer Aeon Corp. for a nominal sum, the first of a two-stage exit. The two companies will form a joint venture, with Tesco investing some 40 million pounds to finance further restructuring. After that, Tesco will have no further financial exposure to the Japanese business.
Tesco, which like other foreign retailers has struggled in Japan, said last August it would pull out of that market. Japan is the smallest of Tesco’s international businesses, with less than 0.5% market share in the Greater Tokyo area. Chief executive Phillip Clarke admitted that it was difficult to build a scalable business in Japan.
Tesco, Britain’s top retailer by sales, bought 78 shops from C Two-Network in 2003 to gain a foothold in Japan, and later bought 27 stores from private chain Fre’c the year after. It operates supermarkets and convenience stores under the Tsurakame, Tesco and Tesco Express names. However, those names have failed to become familiar household names along the lines of 7-11, Lawson, FamilyMart and Aeon.
Tesco is also in the midst of a restructuring at home as it faces a worsening retail environment in the U.K., announcing its first profit warning in 20 years in April. Rapid international expansion has also been blamed for the retailer’s woes, particularly its loss-making U.S. venture, Fresh & Easy.
Elsewhere in Asia, Tesco has fared much better. In Thailand in particular, Tesco is the market leader, and in March Tesco floated its Thai property fund in one of Asia’s biggest initial public offerings of 2012. South Korea has been another successful market for Tesco.
Source: blogs.wsj.com
Tesco to give Carlisle store major facelift - North West Evening Mail
Last updated at 12:28, Monday, 18 June 2012
Tesco is to revamp its dated 1970s supermarket in Victoria Viaduct in Carlisle.
And the chain says it still hopes to build a new store in the city, probably at Morton.
Work on the Victoria Viaduct refurbishment is expected to begin in August and will last several weeks.
It is one of 430 Tescos to receive a makeover in 2012-13 as the company invests £1bn to reverse declining sales.
The aim is to improve the look and feel of stores through warmer colours, better lighting, improved sight lines and clearer signage.
There will be increased emphasis on fresh food, beers, wines and spirits.
Tesco says its plans for the Victoria Viaduct store are at an early stage.
There is no information as to whether it will close during the revamp or if jobs will be created although, nationally, Tesco expects to recruit 8,000 additional staff.
The Viaduct store employs around 100 workers.
Doug Wilson, corporate affairs manager for Tesco, said: “We are looking at plans to refresh our store in Carlisle city centre.
“There are no firm dates for this work as we are yet to finalise the details.
“The refresh is part of our ongoing investment in our stores across the UK to improve and update the current offer to our customers.”
He added: “This work does not alter our plans to expand the Tesco offer in Carlisle.”
Tesco won planning consent for a 40,000sq ft superstore in Viaduct Estate following a public inquiry in 2007.
That store would have replaced the Victoria Viaduct branch.
But work has was put on hold while Tesco bid for a bigger site, owned by the city council, at Morton.
Six supermarket chains, including Tesco, have expressed interest in the 16-acre plot in Wigton Road, which has outline planning consent for an 88,000sq ft store and a filling station. A selection process is underway.
Broadcaster David Jacobs opened the Victoria Viaduct Tesco in October 1971.
It cost £308,000 and was built on the site of the Viaduct Hotel, a former temperance hotel, that was demolished the year before.
A second Tesco in Carlisle, at Rosehill, opened in 1994.
First published at 11:30, Monday, 18 June 2012
Published by http://www.newsandstar.co.uk
Source: www.nwemail.co.uk
Tesco exits Japan at a cost of £40 million - ITN
Tesco is to close all of its stores in Japan after failing to become a major player in the country, despite a nine year push.
The supermarket giant said it would sell its smallest international operation, which has 117 Tsurakame and Tesco stores in the greater Tokyo area because they could not build the business to a big enough scale to be profitable.
The exit will be expensive for Tesco, which has struck a deal with Japan's biggest retailer Aeon, as it will only receive a nominal sum for the sale and, as part of the agreement, it will have to inject £40 million for restructuring costs.
Tesco chief executive Philip Clarke said: "We are very pleased to announce this deal with Aeon today and are confident that this will deliver the best outcome for our staff, for our customers in Japan and for our shareholders."
Tesco has around 1,400 stores in Asia and is understood to be planning to focus on its larger businesses such as China, Korea and Thailand.
Source: www.itn.co.uk
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