Tesco says to sell Japanese unit
British retailer Tesco said Wednesday it had decided to sell its network of 129 small supermarkets in Japan's greater Tokyo region to better focus on its operations in other parts of Asia.
"We have reviewed our portfolio in Asia and the performance of our business in Japan. Having made considerable efforts in Japan, we have concluded that we cannot build a sufficiently scalable business," Tesco chief executive Philip Clarke said in a statement.
Japan is the smallest of Tesco's international retail businesses, the company said.
"We have decided to sell our operations there and focus on our larger businesses in the region, in line with our priority of driving growth and improving returns," added Clarke.
The company said half of the 129 small stores in the greater Tokyo area that operate under the Tsurakame, Tesco and Tesco Express names were profitable.
© 2011 AFP