The British retail giant officially withdrew from China after selling 20percent of its shares

category:Finance
 The British retail giant officially withdrew from China after selling 20percent of its shares


It is reported that Tescos operation in the Chinese market has not been smooth before. According to Tescos financial year 2012-2013 performance report, the company operates in four countries in Asia, Thailand, South Korea, Malaysia and China, with a year-on-year growth of 1.1% in China, only higher than that in Malaysia. In 2011-2012, Tesco ranked first or second in all Asian markets except China. By 2013, China Resources Group had announced an agreement with Tesco to merge Tescos China business into a joint venture. Under the agreement, China Resources holds 80% of the joint venture and Tesco holds 20% of the joint venture. At that time, China Resources contributed 22 billion Hong Kong dollars (about 1.8 billion pounds). After the establishment of the joint venture, Tesco changed its 135 stores in China into China Resources Vanguard.

It is worth noting that Tesco has been adjusting its overseas market layout. It is understood that after exiting the Japanese and US markets and selling its business in Korea, Tesco began to review its business in Thailand and Malaysia in December 2019, which is the only remaining wholly-owned subsidiary of Tesco in Asia. If Tesco completes the sale of its business in Thailand and Malaysia, it will mean that the only remaining overseas business of Tesco, except for Ireland, will be its central European branches, including the Czech Republic, Hungary, Poland and Slovakia.

In fact, in recent years, there has been a ebb tide of foreign investment in Chinas retail market. From 1995 to 1996, with the gradual opening up of Chinas retail industry, Carrefour, Wal Mart and Metro entered the Chinese market successively. It also brings the mode of hypermarket, advanced operation technology and management experience to China. Over the past 20 years, great changes have taken place in Chinas retail market. In addition to Tesco, foreign retailers such as Carrefour and Lotte Mart have also pulled out of China. Another retail giant, Metro, has just sold its products.

The time for foreign retailers to lie and make money in China has long passed. According to the ranking of Chinas top 100 chain stores in 2018, in the field of supermarkets and convenience stores, Suning, Gome and China Resources Vanguard have ranked the top three in terms of sales, RT mart and Wal Mart have ranked the fourth and fifth respectively, Carrefour has ranked the 12th and Metro has ranked the 31st. In 2011, RT mart, Carrefour and Wal Mart ranked third, fourth and fifth respectively. Metro was 15th. However, the market potential in China is still huge. Although some foreign retailers withdraw, some new foreign brands such as Costco and Aldi just entered the Chinese market last year. China is still a huge and attractive market for foreign retailers. Source: Wang Xiaowu NF, editor in charge of Beijing Business Daily

The time for foreign retailers to lie and make money in China has long passed. According to the ranking of Chinas top 100 chain stores in 2018, in the field of supermarkets and convenience stores, Suning, Gome and China Resources Vanguard have ranked the top three in terms of sales, RT mart and Wal Mart have ranked the fourth and fifth respectively, Carrefour has ranked the 12th and Metro has ranked the 31st. In 2011, RT mart, Carrefour and Wal Mart ranked third, fourth and fifth respectively. Metro was 15th.