Tesco has revealed new plans to expand its store operations in both central and eastern Europe as it looks to expand international growth, in a bid to offset slower growth in both the US and its domestic UK markets.
Currently the third-largest grocery retailer in the world, Tesco operates over 800 stores across central and eastern Europe, with outlets in the Czech Republic, Hungary, Poland, Slovakia and Turkey, bringing in some £7.6m (€12bn).
And this looks set to grow further, the group told analysts touring international operations in Asia this week, as it planned to up selling space across the region to 44.1m square feet over the next five years.
As part of the move, Tesco is planning to refurbish its hypermarkets as well as open small, medium and large stores across central and eastern Europe, adding some 5,000 new products in the process, the Press Association reported.
'Our experience tells us that if we give customers the opportunity to shop in multiple formats, we will achieve higher market penetration, increased loyalty and greater band reach,' Tesco's central and eastern operations CEO Trevor Master said in a presentation to analysts.
The news follows the retailer's recent announcement that it is to grow sales into China to US$6.4bn within the next five years, as Asia – which accounts for 16 per cent of group sales and 13 per cent of profits – becomes an ever-more crucial area.
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