TOKYO -- The United States is not the only country about to be invaded by Tesco. The British company on Wednesday said it would open its first store under its own name in Japan later this month, as the world's fifth-largest retailer continues its push into overseas markets, according to a Reuters report.
Tesco PLC, which already operates some 100 supermarkets here under the name Tsurukame, now plans to introduce its Tesco Express stores to the world's second-largest economy, where shoppers have usually given foreign retailers a cool reception.
Japan's small-scale retail market is saturated by the country's omnipresent c-stores, Reuters said. Outlets such as Seven & I Holdings Co. Ltd.'s 7-Eleven stores stock everything from food and snacks to alcohol, underwear and DVDs.
But the British retailer said it was aiming to carve out a new niche. These aren't convenience stores, spokesperson Shizuko Ota said. The stores are in the format of a small supermarket.
Tesco said it plans to open a total of 35 new stores in Japan by February of next year, under both the Tesco Express and Tsurukame banners.
Foreign retailers have so far had a lackluster record in Japan, added Reuters, due in part to fickle shopping habits and fierce competition. Tesco entered the Japanese market in 2003 when it purchased C Two-Network Co. Ltd., the operator of the Tsurukame chain. In recent years, France's Carrefour and Alliance Boots have pulled out of Japan, while Seiyu Ltd., the local unit of Wal-Mart Stores Inc., has failed to post a profit for the last five years.
But Tesco said it is keen to do business in Japan as a domestic player. We are not looking to succeed here as a foreign supermarket, Ota said.
In Japan, we aim to succeed as a Japanese supermarket.
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