webfact Posted December 8, 2019 Share Posted December 8, 2019 Britain's Tesco considers Asia exit FILE PHOTO: A company logo is pictured outside a Tesco supermarket in Altrincham northern England, April 16, 2016. REUTERS/Phil Noble/File Photo LONDON (Reuters) - Britain's biggest retailer, Tesco <TSCO.L>, has signaled a further retreat from its once lofty global ambitions by starting a review of its remaining Asian businesses, which could result in a sale of those Thai and Malaysian operations. Celebrating its 100th anniversary, Tesco is five years into a UK-focused recovery plan launched by Chief Executive Dave Lewis after an accounting scandal capped a dramatic downturn in trading. In October Lewis declared Tesco's turnaround complete and said he would step down next summer. "Tesco confirms that, following inbound interest, it has commenced a review of the strategic options for its businesses in Thailand and Malaysia, including an evaluation of a possible sale of these businesses," it said in a statement on Sunday. The company said the review was at an early stage and gave no details of the approaches received. "No decisions concerning the future of Tesco Thailand or Malaysia have been taken and there can be no assurance that any transaction will be concluded," it added. Tesco trades from 1,967 stores in Thailand and 74 in Malaysia. In the six months to Aug. 24 the businesses together generated sales of 2.6 billion pounds ($3.3 billion), up 1% at constant exchange rates, and operating profit of 171 million pounds, up 42.3%. At a capital markets day in June, Tesco had said it was well placed to grow in Asia, particularly in Thailand, citing an opportunity for 750 new convenience stores over the "medium term". But under Lewis the focus of investment has been the UK, spending nearly 4 billion pounds on the acquisition of wholesaler Booker last year. In 2015 Tesco sold its South Korean arm to a group led by private equity firm MBK Partners for $6.1 billion. A year later it sold its Kipa business in Turkey to Migros, the country's largest supermarket chain. Under its previous management Tesco made costly exits from Japan, the United States and China. If Tesco does quit Thailand and Malaysia, its only overseas operations, apart from Ireland, will be its loss-making central European division, consisting of stores in the Czech Republic, Hungary, Poland and Slovakia. Lewis will be succeeded by Ken Murphy, a former executive at healthcare group Walgreens Boots Alliance <WBA.O>, at a date yet to be confirmed. Shares in Tesco closed at 232.2 pence on Friday, valuing the business at 22.8 billion pounds. (Reporting by William James and James Davey; Editing by Edmund Blair and David Goodman) -- © Copyright Reuters 2019-12-09 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
Somtamnication Posted December 8, 2019 Share Posted December 8, 2019 Interesting strategy. They need a cash infusion; so sell, I guess! Link to comment Share on other sites More sharing options...
unamazedloso Posted December 8, 2019 Share Posted December 8, 2019 ????i see a "tesko" in thailands future.. Link to comment Share on other sites More sharing options...
scubascuba3 Posted December 8, 2019 Share Posted December 8, 2019 Tesco just isn't as popular in Thailand, the small stores are a 3rd or 4th choice for me. The big stores aren't busy (compared to Big C Extra) and the prices aren't attractive enough to make the effort and go there Link to comment Share on other sites More sharing options...
mok199 Posted December 9, 2019 Share Posted December 9, 2019 Turn the volume down a bit.... Link to comment Share on other sites More sharing options...
sammieuk1 Posted December 9, 2019 Share Posted December 9, 2019 A re-brand to same same tat in order its become a shop that bears no resemblance to the Tesco name???? Link to comment Share on other sites More sharing options...
Youlike Posted December 9, 2019 Share Posted December 9, 2019 11 minutes ago, scubascuba3 said: Tesco just isn't as popular in Thailand, the small stores are a 3rd or 4th choice for me. The big stores aren't busy (compared to Big C Extra) and the prices aren't attractive enough to make the effort and go there Ask me what i think of the Tesco songs being played in their big shops.... Link to comment Share on other sites More sharing options...
leeneeds Posted December 9, 2019 Share Posted December 9, 2019 They will be re named Amazonialand, or Muskystore, or Article 44 shop, does one care what a convenance store is named. If it's making money some one will buy it. Link to comment Share on other sites More sharing options...
fforest1 Posted December 9, 2019 Share Posted December 9, 2019 See what happens when you quit giving customers free plastic bags.....Big C and 7-11 up next..... Link to comment Share on other sites More sharing options...
Estrada Posted December 9, 2019 Share Posted December 9, 2019 18 minutes ago, scubascuba3 said: Tesco just isn't as popular in Thailand, the small stores are a 3rd or 4th choice for me. The big stores aren't busy (compared to Big C Extra) and the prices aren't attractive enough to make the effort and go there Rubbish... last month in Tesco Seacon Square, there were so many customers that they were queing right back to the rear of the store. I had to wait a month for the situation to improve. It is always busy. Prices are mostly cheaper than Macro, Tops, Big C and Villa. I always compare prices and pick the bargains from each outlet. Some items are used as loss leaders so sometimes one outlet is cheaper for some essentials than others. You just have to get to know the particular outlets special offer rotation. Link to comment Share on other sites More sharing options...
Orton Rd Posted December 9, 2019 Share Posted December 9, 2019 2 minutes ago, Estrada said: Rubbish... last month in Tesco Seacon Square, there were so many customers that they were queing right back to the rear of the store. I had to wait a month for the situation to improve. It is always busy. Prices are mostly cheaper than Macro, Tops, Big C and Villa. I always compare prices and pick the bargains from each outlet. Some items are used as loss leaders so sometimes one outlet is cheaper for some essentials than others. You just have to get to know the particular outlets special offer rotation. That was because they were all spending their free 1k baht in there, we did the same in our local one we rarely go in. I prefer Tesco, or Lotus as all the Thais call it for wine etc, the rest of the stuff you can buy anywhere Link to comment Share on other sites More sharing options...
George Bowman Posted December 9, 2019 Share Posted December 9, 2019 48 minutes ago, webfact said: No decisions concerning the future of Tesco Thailand or Malaysia have been taken Personally, I hope that Tesco sticks around as my local store is always willingly to lend a hand to help out. Maybe Tesco needs to find someone with deeper pockets... Link to comment Share on other sites More sharing options...
terryw Posted December 9, 2019 Share Posted December 9, 2019 Tescolotus is not up for sale. Two years ago Tesco UK was struggling against the discounters such as Aldi, but the business is now again making good profits. What is actually happening is that local business groups in Thailand and Malaysia are looking to buy out Tesco. The estimated value of Tescolotus is 6.5 billion GBP. My source is yesterday's Sunday Telegraph. Link to comment Share on other sites More sharing options...
lopburi3 Posted December 9, 2019 Share Posted December 9, 2019 1 hour ago, uffe123 said: When Bic-C sold to the locals, their service went to chit, and I hardly ever shop their any more. selections are meager and bare shelves. While Carrefour was operating they had a good selection of items not found elsewhere, if you could figure out the logic as to where items were placed. It was a nightmare finding anything for this customer but they often had good items at fair price and if not looking for something specific a pleasant shopping experience. As Big-C extra find them selling mostly street stall quality in bulk and not a place I care to shop - but admit this may just be due to the 2 branches I have access - but not a happy shopper at either. Link to comment Share on other sites More sharing options...
worgeordie Posted December 9, 2019 Share Posted December 9, 2019 Looks like CP will be able to buy it back again. regards Worgeordie Link to comment Share on other sites More sharing options...
mikebell Posted December 9, 2019 Share Posted December 9, 2019 Pattaya police are doing their bit by cutting off the main entrance with one of their bandit stick-ups. I go to Big C now where they have more check-out staff and no queues. Link to comment Share on other sites More sharing options...
bluesofa Posted December 9, 2019 Share Posted December 9, 2019 3 minutes ago, worgeordie said: Looks like CP will be able to buy it back again. regards Worgeordie What's with 'again'? Were the/are they involved already? Link to comment Share on other sites More sharing options...
robblok Posted December 9, 2019 Share Posted December 9, 2019 49 minutes ago, Youlike said: They also bought Makro...now the shop is loaded with pallets, customers have to find their way around those....managing a shop is still too hard for the Thai. You forget that the shop is open from 7am till 23pm. When do you want them to do the work. I shop often in the Makro and never found it a problem. I shop there multiple times a week. I guess you will always have moaners, especially those that like to blame it all on Thais. Seems to me the Brits cant manage their shops as they have to sell them. (i mean if we need to criticize someone why not keep it on topic) Link to comment Share on other sites More sharing options...
worgeordie Posted December 9, 2019 Share Posted December 9, 2019 Just now, bluesofa said: What's with 'again'? Were the/are they involved already? CP were owners of Lotus,and had to sell to reduce debt,when the bubble burst in 1997,that's why the company is called TESCO/Lotus, they also had to sell off their stake in Makro,which they have already taken back control of. regards Worgeordie Link to comment Share on other sites More sharing options...
bluesofa Posted December 9, 2019 Share Posted December 9, 2019 3 minutes ago, worgeordie said: CP were owners of Lotus,and had to sell to reduce debt,when the bubble burst in 1997,that's why the company is called TESCO/Lotus, they also had to sell off their stake in Makro,which they have already taken back control of. regards Worgeordie Ah, thanks for the background. I had always assumed (dangerous, I know) that Tesco had started the whole thing up, and perhaps added 'Lotus' to the name as it gave it a more local sounding name. I stand sit corrected. Link to comment Share on other sites More sharing options...
saengd Posted December 9, 2019 Share Posted December 9, 2019 Where do they get this stuff from, Tesco isn't looking to sell, a mystery buyer has expressed interest: https://www.theguardian.com/business/2019/dec/08/tesco-weighs-up-sale-of-thai-and-malaysian-stores "an analyst at Shore Capital, said the Asian operations were a “trophy asset” given Tesco’s leading market position in Thailand and the growth potential offered by a country experiencing increasing urbanisation. “It could go for a very high price, and it’s also the case that Tesco doesn’t need to sell,” he said. “It should be a knockout price.” If sold the premium could be stellar. Link to comment Share on other sites More sharing options...
hansnl Posted December 9, 2019 Share Posted December 9, 2019 1 hour ago, uffe123 said: When Bic-C sold to the locals, their service went to chit, and I hardly ever shop their any more. selections are meager and bare shelves. Quite so! Makro and Big C are Thai now, and not worthy of interest. All vestiges of "farang" articles are gone, mostly, prices are the same, and lately Tesco is going the same way. Link to comment Share on other sites More sharing options...
Katipo Posted December 9, 2019 Share Posted December 9, 2019 1 hour ago, scubascuba3 said: Tesco just isn't as popular in Thailand, the small stores are a 3rd or 4th choice for me. The big stores aren't busy (compared to Big C Extra) and the prices aren't attractive enough to make the effort and go there Actually, Tesco in Thailand is one of their most profitable markets, and has been for quite some time. It's the problems back home due to declining profits and mismanagement that are the reason behind the potential sale. I should add that the idea for this sale has been around for over 5 years. The fact is seems to be being so widely talked about at this time, suggests that a potential buyer/exit strategy is in the pipeline. Perhaps we'll see a Chinese supermarket chain with aisles full of Chinese products very soon. Link to comment Share on other sites More sharing options...
MaxLee Posted December 9, 2019 Share Posted December 9, 2019 Well moving their investments somewhere else,.... which International company is next? Link to comment Share on other sites More sharing options...
Moonlover Posted December 9, 2019 Share Posted December 9, 2019 1 hour ago, scubascuba3 said: Tesco just isn't as popular in Thailand, the small stores are a 3rd or 4th choice for me. The big stores aren't busy (compared to Big C Extra) and the prices aren't attractive enough to make the effort and go there Tesco and Big C are the two main supermarkets in Sakon Nakhon. Of the two, Big C draws far more customers. Even on busy shopping days it's possible to stroll around unmolested in Tesco whilst in it's opposite number it's like being in a rowdy football fan crowd. I don't understand why this marked difference, but as far as Thais are concerned, Big C has got what it takes to pull the crowds in. I'll be sorry to see Tesco go as we use their Mini Store just a few kms away quite a lot. Link to comment Share on other sites More sharing options...
saengd Posted December 9, 2019 Share Posted December 9, 2019 12 minutes ago, hansnl said: Quite so! Makro and Big C are Thai now, and not worthy of interest. All vestiges of "farang" articles are gone, mostly, prices are the same, and lately Tesco is going the same way. Why should Makro and Big C stock more farang products, I imagine the farang share of their market is so small as to be almost irrelevant. Link to comment Share on other sites More sharing options...
Pilotman Posted December 9, 2019 Share Posted December 9, 2019 no loss at all. Tesco Lotus follows the fine tradition of Tesco in the UK, <deleted> customer service and a limited and high cost goods. I will happily wave them off at the airport. Go Big C and Macro, well played, but you still need to up your game. Link to comment Share on other sites More sharing options...
Sheryl Posted December 9, 2019 Share Posted December 9, 2019 Thai bashing posts removed and quotes to them edited. Link to comment Share on other sites More sharing options...
saengd Posted December 9, 2019 Share Posted December 9, 2019 33 minutes ago, worgeordie said: CP were owners of Lotus,and had to sell to reduce debt,when the bubble burst in 1997,that's why the company is called TESCO/Lotus, they also had to sell off their stake in Makro,which they have already taken back control of. regards Worgeordie Are you sure about Makro? "Makro is an international brand of warehouse clubs, also called cash and carries. Ownership of the worldwide chain of stores is split between two companies: Metro AG in Europe and SHV Holdings in Latin America. SHV opened the first Makro in Amsterdam in 1968". https://www.siammakro.co.th/en/about_structure.php Link to comment Share on other sites More sharing options...
bignbad Posted December 9, 2019 Share Posted December 9, 2019 15 minutes ago, Moonlover said: Tesco and Big C are the two main supermarkets in Sakon Nakhon. Of the two, Big C draws far more customers. Even on busy shopping days it's possible to stroll around unmolested in Tesco whilst in it's opposite number it's like being in a rowdy football fan crowd. I don't understand why this marked difference, but as far as Thais are concerned, Big C has got what it takes to pull the crowds in. I'll be sorry to see Tesco go as we use their Mini Store just a few kms away quite a lot. Complete reversal in Phetchabun, Big C empty, Lotus Tesco and Macro packed to the doors! Link to comment Share on other sites More sharing options...
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