New Tesco boss will continue to focus on Asia

Posted by Rob Jones on 14th Sep 10

Philip Clarke, the new Tesco boss due to take over from Sir Terry Leahy when he steps down next March, will focus on Asia, according to a recent interview. Mr Clarke currently looks after Tesco’s European and Asian operations and says that international business will continue to take up much of his time when he takes the reigns.

Mr Clarke said he would like to expand the business by offering small shop owners the chance to become part of the Tesco franchise. He added that it was not a matter of deciding where franchised stores would work, but where they would not.

In Seoul, Clarke has already had some success with 18 franchised stores. For Tesco, franchises mean less initial outlay of capital. Clarke said that the franchisees’ initial investment is guaranteed and they get a brand new store which looks very like every other Tesco Express. He called the arrangement a win-win situation and hopes that the Korean government will agree.

Mr Clarke said he planned to spend around three months of the year abroad focusing on international development. He added that Richard Brasher, who will be in charge of UK business, did not need him constantly peering over his shoulder.

Korea is currently Tesco’s most important market behind the UK. It generates around £300 million in profits and is referred to by UK executives as Tesco’s second engine. The grocer now has its eye on China, and over the next five years would like to develop around 40 million square feet of shop-floor space.

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Added by Apteka Opole on 25th Mar 12