The biggest supermarket chain in Britain, Tesco Plc is all set to bring its brand to China. The latest reports say that the brand will be dropped in the country after it officially enters a joint venture with China Resources Enterprise Ltd. With the new deal, Chinese company is set to become the biggest retailer in the country when it comes to market share.
More reports have revealed that the merger will combine the outlets of Tesco and shopping centers in China with 2,986 China Resources Enterprise Stores under the Vanguard brand name. Tesco in a statement said, “It is not possible to say at this stage, and we will not speculate. It is important to remember that we don’t trade as Tesco everywhere. In our second-largest market, South Korea, we trade as Homesplus. In Thailand, Lotus. In Turkey, Kipa”.
The UK-based retailer began its operations in China in 2004, but did not manage to win a dominating position. The agreement says that the China-based company will be controlling 80 percent of the new chain and Tesco will be in charge of 20 percent.
The new venture is expected to claim about 8.6 percent of the market share in the country. The turnover of the group in the retail sector during the first three quarters of 2013 increased 13.9 percent.
Photo Credits: Guardian