Tesco Considers Exiting Asian Market
LONDON, UK - Since Tesco’s CEO Dave Lewis came onto the retailer’s scene in 2014, he was instrumental in turning the company around after a massive £6.4 billion ($7.9 billion) loss was posted. In the midst of Lewis' departure, shifting retail markets, and competitive measures to keep up, Tesco may once again be pivoting its expansion strategy and exiting from Asia.
A statement sent to the industry on December 8 read: “Tesco confirms that, following inbound interest, it has commenced a review of the strategic options for its businesses in Thailand and Malaysia, including an evaluation of a possible sale of these businesses.”
The statement continued, “The evaluation of strategic options is at an early stage, no decisions concerning the future of Tesco Thailand or Malaysia have been taken, and there can be no assurance that any transaction will be concluded. A further announcement will be made if and when appropriate.”
A report from BBC News noted that the Asian operation, which operates under the Tesco Lotus brand, could be worth more than £7 billion ($9.19 billion). The revenue of these profitable operations, some analysts noted, were nearly £4.9 billion ($6.44 billion).
Who will snap up the Asian market should Tesco decide to sell? And will Tesco look to expand elsewhere? AndNowUKnow will keep its eyes on the retail landscape.