![]() |
Tesco Exits South Korea
![Case Details](images/details.png)
![Case Introduction 1](images/intro1.png)
![Case Introduction 2](images/intro 2.png)
![Case Excerpts](images/excerpts.png)
EXCERPTS
TESCO’S GLOBAL EXPANSION
TESCO IN SOUTH KOREA
In the early 1990s, there was a growing demand from consumers in South Korea for a modern shopping experience owing to rapid economic growth and increasing disposable incomes. The government had adopted protectionist policies and the retail sector was not open for foreign direct investment (FDI). ...
TESCO’S STRATEGIES IN SOUTH KOREA
Immediately after entering into the joint venture, Tesco went about upgrading the store layouts. The stores were modified to resemble department stores, which were spacious and clean. Tesco’s stores in Korea did not resemble its stores in the UK or in other European locations like Hungary, Poland, the Czech Republic, and Ireland. The stores in South Korea stocked more fresh food products compared to Tesco stores in other countries....
CHANGES IN THE OPERATING ENVIRONMENT
In October 2012, when Tesco posted its first fall in profits in 20 years, the company also announced that its profits in South Korea would take a £ 100 million hit due to the "retail market development bill” that had been passed by the government in November 2010...
TESCO’S EXIT FROM SOUTH KOREA
After several months of speculation, Tesco sold its South Korean stores to Asian private equity firm MBK Partners for £4.2 billion on September 07, 2015....
EXHIBITS
Exhibit I: Canada Pension Plan Investment Board: CPPIB
Exhibit II:The Tesco Way
Exhibit III:Retail Industry in South Korea
Exhibit – IV:South Korea "Retail Market Development Bill