On March 31, 2017, UK-based retailer Tesco Plc (Tesco) announced that it had completed disposal of 95.5% of the controlling stake it had had in the Tesco Kipa business in Turkey. Tesco sold the business to leading Turkish retailer Migros Ticaret A.S (Migros) in June 2016 for £ 30 million (TRY or Turkish Lira 302.3 million). Tesco entered Turkey in 2003, attracted by the growth potential of the organized retail sector in the country. It entered the country through the acquisition of Kipa, a retail store chain. As it had done in many of the international markets, Tesco retained the identity of the local partner.

The Turkish retail market of more than 80 million consumers was valued at US$ 24 billion per year. The market attracted Tesco and other international retailers like Carrefour and Metro as it had a growing young population with high purchasing power and growing consumer spending. Though Tesco performed well initially, its presence was limited to certain regions of the country. The retailer found itself faced with huge challenges as both the local and traditional retailers were very strong in the highly competitive retail market in the country. With their intimate knowledge of the market and local buying habits, the local retailers had spread their operations into the hinterlands of the country. They had adopted some of the practices of the global retailers, which made them formidable competitors.

Business Environment Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

Business Environment Case Studies Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

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