USEUROPEAFRICAASIA 中文双语Français
Business
Home / Business / Companies

Tesco to close its first China store

By WU YIYAO in Shanghai | chinadaily.com.cn | Updated: 2013-09-17 16:59

Tesco is to close its first store in China in Shanghai's Changning district on Sept 21, after 15 years of operation, when the "lease expires", the retailer said in an announcement.

The store has posted excellent profits in the past years but to close it is part of the company's strategic shift, reported China Business News on Tuesday, citing sources at Tesco China.

Analysts said retailers are facing increasing operation pressures alongside fast-rising rents.

Tesco closed four stores in China in 2012. In early 2013, a store on Shanghai's Zhenning road was also closed.

In August, Tesco and China Resources, the largest retailer in China's mainland, signed a memorandum of understanding to merge their hypermarket business on the mainland.

China Resources will hold 80 percent of shares while Tesco will hold 20 percent, reported CBN.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US