>>tesco becomes a force in china; we’ve not seen the last of green
In recent years I have been fortunate enough to have visited China a couple of times. It’s an amazing place; a country that’s hustling, bustling, booming. And Shanghai stands out as in my mind as one of the most exciting cities I think I have ever visited.
Locals will tell you that Shanghai is not representative of the whole of China. They will remind you that behind the wealthy coastal cities lies a huge hinterland of rural poverty. They are, of course, right. Nevertheless, a visit to Shanghai provides a real taste of the potential offered by the world’s fastest-growing economy and it helps you understand just why so many international retailers have been keen to enter what is still a very risky market.
Now, after a three-year search for the right partner, Tesco is about to join their ranks. We revealed back in March that Tesco was in talks to buy a 50% stake in the Hymall hypermarket chain. It confirmed that news this week with a £140m deal that will give it a presence in some of the key Chinese conurbations, link it with a good local operator, and provide plenty of scope for rapid expansion. More than that, however, the deal will give it a market-leading position in Shanghai - China’s largest retail market - leapfrogging over arch-rival Carrefour in the process. It’s a great deal and another important milestone in Tesco’s plan to become a truly international retailer. It now operates in 13 countries. All of which begs an obvious question: where next?
Philip Green warned that if M& S didn’t want his money, he would go and sit on a beach. Well, this week M& S demonstrated it definitely didn’t want his money, so the entrepreneur has proved as good as his word and has now departed for his beach, mumbling about how his virtual bid was treated with contempt.
Green’s decision doesn’t mark the end of the story; he is now threatening to wage a retail war on M&S. But when the dust settles, what next? Well, given his interest in Safeway and M&S, Green has shown he has serious ambitions to build his retail empire. And with all the change happening in our sector - not least at Sainsbury - I cannot help feeling grocery may not have seen the last of the tycoon.
shanghai is no surprise
au revoir not adieu
In recent years I have been fortunate enough to have visited China a couple of times. It’s an amazing place; a country that’s hustling, bustling, booming. And Shanghai stands out as in my mind as one of the most exciting cities I think I have ever visited.
Locals will tell you that Shanghai is not representative of the whole of China. They will remind you that behind the wealthy coastal cities lies a huge hinterland of rural poverty. They are, of course, right. Nevertheless, a visit to Shanghai provides a real taste of the potential offered by the world’s fastest-growing economy and it helps you understand just why so many international retailers have been keen to enter what is still a very risky market.
Now, after a three-year search for the right partner, Tesco is about to join their ranks. We revealed back in March that Tesco was in talks to buy a 50% stake in the Hymall hypermarket chain. It confirmed that news this week with a £140m deal that will give it a presence in some of the key Chinese conurbations, link it with a good local operator, and provide plenty of scope for rapid expansion. More than that, however, the deal will give it a market-leading position in Shanghai - China’s largest retail market - leapfrogging over arch-rival Carrefour in the process. It’s a great deal and another important milestone in Tesco’s plan to become a truly international retailer. It now operates in 13 countries. All of which begs an obvious question: where next?
Philip Green warned that if M& S didn’t want his money, he would go and sit on a beach. Well, this week M& S demonstrated it definitely didn’t want his money, so the entrepreneur has proved as good as his word and has now departed for his beach, mumbling about how his virtual bid was treated with contempt.
Green’s decision doesn’t mark the end of the story; he is now threatening to wage a retail war on M&S. But when the dust settles, what next? Well, given his interest in Safeway and M&S, Green has shown he has serious ambitions to build his retail empire. And with all the change happening in our sector - not least at Sainsbury - I cannot help feeling grocery may not have seen the last of the tycoon.
shanghai is no surprise
au revoir not adieu
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