Tesco pulls out of Japan
After 8 years of trying to enter the Japanese retail market, Tesco has admitted defeat and will sell off it’s 129 small stores.
Tesco’s CEO Philip Clarke has stated that there is a scalability issue. Tesco first moved into the Japanese market with the acquisition of C2 in 2003 where they purchased 78 stores.
It seems that Tesco has misunderstood the cultural problems associated with a country like Japan. Other European companies have failed in Japan too, French Supermarket Carrefour and UK chain Boots to name a couple.