Tesco Stops Using Brand Name In China After Merger Of Local Operations With CRE

UK’s retailer Tesco will stop using its brand name in China following the merger of its operations in the country with state-supported retailer China Resources Enterprise Ltd. According to local media reports, the merger would combine Tesco’s stores and shopping centers in China with CRE’s 2,986 stores under the Vanguard brand name. Tesco, which began operating in the country in 2004 but failed to secure a strong position in the market, will hold 20 percent of the joint venture, while CRE will control the company through its 80 percent stake. The merged business will have an 8.6 percent share of the retail market in China.