Tesco withdraws from Japan

TESCO IN JAPAN


Looking like a bizzare photoshop GCSE project for West meets East, Tesco express never did look quite at home in Japan. It is an interesting case for people like us with no formal experience in supermarkets but a modicum of common sense. Carrefour had already gone into Japan and failed, mainly due to forgetting they would need their own warehouses and supply chain if they were going to impose a foreign model. Oh yes, and that about 5 supermarkets might not be critical mass...

Tesco instead bought C two network, a regional supermarket employing around 4000 people. This was more sensible than Carrefour (whose experience is the sort of story horror books are made of) but only just. Supermarkets are already intensely competitive in Japan and require things we don't consider here (like individually wrapped veg). I could never understand what Tesco was to offer in Japan and unfortunately it seems Tesco didn't understand either.