Tesco is stepping up its presence in Thailand with a significant investment package over the next two years which will take its total number of stores in the country to 36 and its total investment in Thailand to £560m by the end of 2002. Tesco entered the market in 1998 with the purchase of the Lotus hypermarket chain and now operates 26 stores in and around the capital Bangkok, competing with European rivals Casino, Metro and Carrefour. However, Tesco's rapid acquisition of sites in the city before local planning laws made new sites in Bangkok harder to come by, have effectively given Tesco a protected position in the capital, according to a recent report from Schroder Salomon Smith Barney. A Tesco spokesman said the secret of its success in overseas markets was its commitment to using local managers and staff and its superior distribution system. "As far as I am aware, Tesco has the only fully integrated computerised cross docking facility in south east Asia." Lead times from the centre to stores are now just 24 hours. Tesco also has more than 200 own label lines sourced from Thai suppliers, with more to come in the next few months. {{NEWS }}

Topics