Could Tesco live to regret selling up in Asia?

With a potential £7bn sell-off of its Thai and Malaysian stores, James Moore asks whether a global retreat is the best move for the supermarket

Tesco is reviewing its businesses in Thailand and Malaysia which may lead to their sale (Reuters)

The history of Tesco reads eerily like the history of Britain. Starting off small, it grew into a superpower that strode on to the world stage for a while, only to beat a mostly ignominious retreat.

The supermarket that ate Britain now appears to be in the final stages of that. Having pulled out of a diverse range of markets including California, South Korea, Japan and Turkey, the future of its businesses in Malaysia and Thailand is being reviewed following “inbound interest” from an unnamed investor.

The second of the pair has on occasion been described as a “jewel” in Tesco’s crown. With margins of 6 per cent, twice what the grocer makes from its UK customers, that description is apt.