Tesco To Continue Investing In Asia

Sources: Bernama.Com, thestar-online






KUALA LUMPUR, July 13 (Bernama) -- Tesco plc, the international grocery and general merchandising retail chain, will continue to invest in Asia despite the global economic slowdown, its chief executive officer of retailing services, Andrew Higginson, said Monday.

"We had terrific success and we are the biggest retailer in Asia. It is important for us to expand as there are still huge opportunities in Asia, including China and Japan," he said.

In Asia, South Korea is Tesco's biggest market outside the United Kingdom where the company is based, followed by Thailand and Malaysia.

Higginson said Tesco planned to spend 3.6 billion pound this year on capital expenditure to support growth around the world, of which slightly more than half will go to the Asian markets.

Malaysia, he said, is an important market for Tesco as the country is the third major anchor for Tesco in Asia, after South Korea and Thailand.

"It is important for Tesco to establish its third anchor before pushing into China," he told reporters on the sidelines of the Chartered Institute of Management Accountants (CIMA) World Conference 2009 held here.

Besides Asia, Tesco will also continue to invest to expand its business in Europe, including Poland, the Czech Republic and Hungary, Higginson said.

He said the company will continue to invest in developing its retailing and financial services and telecoms, adding that it is important to invest to be in a commanding position to reap benefits when the economy recovers.

Originally specialising in food and drinks, Tesco has over the years diversified into areas such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, and dental plans as well as Internet services and software.

The conference, themed "The Global Village -- No Boundaries, No Limits", focuses on managing global profitability in the downturn, outsourcing as a competitive strategy, managing costs, shaping the future and the impact of the current economic crisis on globalisation.

At the event, finance directors were told that businesses must not only continue to deliver against short-term demands but still invest for the long term if they are to be in the best position to benefit when the global economy starts to recover.

"Now, more than ever, we must really listen to our customers and strive to be first for them. But to be able to deliver for customers, you need to get the basics right -- manage cash and costs carefully," Higginson said.