Tesco targets Vietnam in new global expansion
Wednesday 12 January 2011
Tesco is looking to launch in Vietnam in a move that would extend the grocery giant's global empire to 15 countries.
Such a rollout would underline the world's third largest retailer's relentless push to grow its international business. This is expected to be a key area of focus for Philip Clarke, Tesco's chief executive designate, who is stepping up from his current role as international and IT director when Sir Terry Leahy retires in March.
The grocer has already reshuffled its management structure to form a new UK board before Mr Clarke, a Tesco lifer, takes the helm.
The company is understood to be looking to enter two new countries, although an announcement about launching in a new territory is not thought to be imminent.
However, Tesco flagged up the attractiveness of South-east Asia at a recent event for City analysts, which it took to see its businesses in China and South Korea back in November. At the time, Tesco noted the relatively undeveloped grocery markets of Vietnam, the Philippines and Indonesia, as well as their storming economic growth and huge populations.
Tesco, which is already the market leader in Thailand and Malaysia, was thwarted at the end of last year in its efforts to buy stores in Malaysia, Thailand and Singapore from the French giant Carrefour.
Vietnam has a population of 87 million and, according to Tesco's presentation, a "modern grocery distribution" market worth just £4bn at present. The country's economy grew by 8 per cent in 2009 and its income per capita was expected to surpass $1,000 in 2010. Regarding Vietnam, a Tesco spokesman said yesterday: "We never comment on rumour and speculation."
Tesco is set to update the City on its Christmas trading on Thursday. Analysts at Deutsche Bank expect it to deliver flat UK like-for-like sales growth, a modest slowdown from the 0.7 per cent uplift in the third quarter.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Number of young homeless people in Britain is 'more than three times the official figures'
- 3 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
- 4 The biggest first date turnoff has been revealed
- 5 German man found living with 300 rats in tiny apartment
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Number of young homeless people in Britain is 'more than three times the official figures'
Budget 2015: George Osborne to axe subsidies for higher income earners in social housing
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...