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Asia Trends 2019
Our top five trends shaping the Asian retail market and influencing retailer strategy over the next year and beyond.
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Although Tesco delivered encouraging sales for Q3 in the UK, Asian results continue to be challenged.
Tesco reports stronger underlying performance in Asia, but sales in Thailand continue to be impacted by changes in pricing, promotions and couponing. Tesco management is restructuring its Thai business to stop bulk-selling. Government-issued welfare cards scheme also have an impact on sales, despite minor changes since it was first issued.
The retailer plans to accelerate its changes to its operating model in Thailand. It has been renegotiating its promotional offers, helping to reduce costs and delivering profit recovery.
Tesco CEO, Dave Lewis, commented, “In Asia, negotiations with suppliers are concluding satisfactorily and we can see this in our simpler, clearer, more impactful offer for customers.”
Strong seasonal proposition has delivered positive LFL Christmas results with 2% sales increase in the UK. It is outperforming the market in both volume and value terms, and in all the key categories including food, clothing and general merchandise.
Keep up-to-date with the latest retail developments from Asia.