After a three year search, Tesco has become the latest supermarket giant to enter China, joining with Ting Hsin, a 25-strong, upscale hypermarket based in the Shanghai region, in a deal worth £140 million.
Tesco has secured a 50 per cent share in Taiwan-based Ting Hsin’s supermarket chain Hymall, which is run by the Chinese company’s subsidiary Ting Cao.
Hymall has 25 hypermarkets in China and has announced plans to add another 10 to its portfolio by the end of 2004. It reported net profits of US$10m in its last financial year, on sales of US$603.7m.
Tesco chief Sir Terry Leahy said: “China is one of the largest economies in the world with tremendous forecast growth…Hymall is already a leading retailer in Shanghai, China’s largest retail market, and the chain of 25 hypermarkets provides an excellent base of stores from which we can grow together.”
Tesco's corporate affairs director Lucy Neville-Rolfe gave an indication of the Tesco approach: "At first we will sell what is in stores at present...then look to bring in our own brand," she said.
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