Tesco Seeks Joint Venture Partner In China, Scales Down Expansion Plans

UK-based retailer Tesco is looking for a joint venture partner to help continue its expansion in China's grocery market. According to market analysts, potential partners include China Resources Enterprise, the state-controlled company that owns the Vanguard and Ole supermarket chains. In 2011, Tesco launched an aggressive expansion plans for the country, intending to invest billions of pounds to open shopping malls and supermarkets. Tesco, however, has lowered its targets in China, where it posted sales of £1.4 billion in 2012. Although the company maintains that China remains a market of strategic importance, it has nevertheless adopted a more careful strategy in the country.