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Tesco Hollers For Help In China; Will Partner With China Resources Enterprise

August 9, 2013: 12:00 AM EST
British supermarket chain Tesco has abandoned attempts to make a profit by itself in China, and is pursuing a partnership with China Resources Enterprise Ltd. Retail analysts say the move by Tesco is an acknowledgement that it -- like other foreign retailers -- had a tough time negotiating with suppliers in a “fast-growing but tricky market”. CRE has an intimate knowledge of local customers and an established supplier and distribution infrastructure. The joint venture would have sales of $15.6 billion, with CRE and Tesco’s interests pegged at 80 percent and 20 percent respectively. Tesco would merge its 131 stores with CRE's Vanguard unit, which operates 2,986 mainly hypermarkets or supermarkets across China and Hong Kong.
Denny Thomas, Donny Kwok and Neil Maidment, "After nine years, Tesco gives up on cracking China alone", Reuters, August 09, 2013, © Reuters
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