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Tesco has released its interim results for 2018/19, with sales in Asia reaching £2,365m, down 5.0% at constant exchange rates.
Tesco Lotus has opened its 2,000th store in Thailand on Bangkruay-Sainoi Road.
The retailer committed to adding about 55,000 sq m of retail space in 2018. It has opened 45 stores so far: six hypermarkets, one department store, one talad store and 37 Tesco Express stores. Sompong Rungnirattisai, CEO of Tesco Lotus, is optimistic about the Thai economy and believes it will strengthen further. "We have seen an improving economy this year with the highest ever consumer confidence in July compared with the past few years. We expect the overall economy in the second of this year will be even better," said Sompong.
The Bangkruay-Sainoi store is the largest hypermarket opened in four years. The hypermarket takes up 5,000 sq m while the rest of the shopping mall takes up 17,000 sq m. Index Living Mall and Mr DIY are major anchor tenants.
Key features of the hypermarket:
"The Tesco Lotus Bangkruay-Sainoi store offers several services designed specifically with the 4.0 era customers in mind," Sompong said. There is free wifi throughout the mall. The shopping mall also has a 1.2km cycling lane, a multi-purpose park and a recycling centre to help shoppers recycle paper, plastic and electronic waste.
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Tony Hoggett, CEO of Tesco Asia has been appointed to a new chief operations role, while Alison Horner, chief people officer will replace him to head up the retailer's Asian businesses, according to press reports. The changes will take effect from June 1st.
In his new role Hoggett will work alongside chief product officer Jason Tarry and chief customer officer Alessandra Belini, focusing on "leveraging operational capability and strategy across the group". A key task will be to ensure the smooth running of stores following the recent drive to streamline store team structures and create broader people partner roles with regional remits.
While Hoggett will now mainly focus on the core UK business - led by Charles Wilson since the completion of Tesco's £3.7bn merger with Booker in March - he will retain responsibility for Tesco's joint ventures in China and India. The core Asian business in Thailand and Malaysia will now be headed by Tesco's chief people officer, Alison Horner. Commenting on her new role Dave Lewis said "she has a long history of operational experience and leadership within Tesco, and is ideally placed to lead the Asia team through the next stages of transformation”. Horner will be replaced by Natasha Adams, who is being promoted from UK people officer to take up the position on the retailer’s executive committee.
CEO of Tesco Asia since March 2017, Tony Hoggett was formerly Tesco's UK COO. He joined Tesco in 1990 and gained extensive operational experience in both the retailer's domestic and international markets. Having started out managing stores in the UK, Hoggett then worked as a stores director, before moving to China in 2007 to head up the retailer's business in the south of the country, followed by a period as COO for its operation in Turkey. In 2011, he returned to the UK to continue operational roles, helping stabilise the performance of Tesco's domestic business.
23 May, London
Hear from Dave Lewis, Group CEO, Jason Tarry, Chief Product Officer, and Alessandra Bellini, Chief Customer Officer, along with their leadership team who will provide a business and commercial update.
Tesco Lotus plans to keep expanding new stores and spaces, adding around 55,740 sq m in retail space, according to a speech by Sompong Rungnirattisai, the newly appointed chief executive.
This year the retailer plans to add around 55,740 sq m in retail space, an increase of 40% from around 40,000 sq m it added last year. The new spaces will be from opening new stores with a focus on secondary districts where there are no Tesco Lotus stores. The retailer currently has a total of retail space of around 1.437m sq m at nearly 1,950 stores nationwide.
It will also refurbish around 120 existing stores to boost sales through services at fresh food department, with its '[email protected]' initiative, and reallocating spaces to fit Thai consumers' lifestyles.
Tesco Lotus will continue to enhance the shopping experience benefiting from its strategy and investment on omnichannel, which enables consumers to buy products easily through all online and offline channels. It will also boost the number of online shoppers by incentivising its 15 million Club Card members to use its mobile app, which has been downloaded 3.5 million times.
"Online sales have high growth, but it remains minimal when compared with offline sales...We cover both sales channels to make things convenient for consumers." Said Sompong
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UK retailer Iceland is partnering with JD.com to make its debut in the Chinese market.
A.S. Watson has a diverse retail portfolio, including a range of different health & beauty banners, supermarkets and electrical stores. We review some of the latest new concept Watsons stores in Taiwan, China, Singapore and Russia.
The retailer sees greater opportunity on the Star Market format.
Trent Hypermarket has shut all of its Star Daily stores. A total of 20 Star Daily stores are affected by this announcement. In a statement issued by the company, a spokesperson for the company said, “the Star Market format is seen to afford the most sustainable platform for expansion and consequently Trent Hypermarket Private Limited has transitioned out of its Star Daily Stores.”
Trent is the retail arm of Tata Group with a chain of department stores, bookstores and grocery retail stores. The grocery retail business under Trent Hypermarket is a 50:50 joint venture with Tesco, which offers retail expertise and technical capability to support its growth.
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