Tesco Assigns Ownership Of China Retail Business To Joint Venture With State-Owned Retail Operator

UK-based retailer Tesco said it plans to transfer its 131 stores and shopping malls in China to a joint venture with state-owned China Resources Enterprise. Tesco will hold a 20 percent stake in the joint venture, which would have combined sales of about £10 billion annually. CRE will receive 80 percent of the joint venture in return for its 3,000 Vanguard stores across China and Hong Kong. China’s economic slowdown and stiff competition have made it hard for some international retailers to make money in the country. Earlier in 2013, German retailer Metro announced its plan to close its consumer electronics business in the country. In 2012, Home Depot closed its seven big box stores in China.