Global expansion seems to be going well for UK based companies. South Korea, India, and China are giving boosts to those trying to add to the bottom line. While many of the expansions create jobs in other countries, some create jobs locally to handle the expansions within main headquarters and with supplier companies. Tesco has seen a boost to its bottom line due to its expansions to Asian countires.
Tesco has seen an increase in its sales due to the international operations. It currently derives 31 per cent of its sales and 22 per cent of its profits from South Korea, China, India, and other international markets. This is an increase of 10 per cent in sales and a 5 per cent increase in profits than when compared with data from 10 years ago.
Tesco’s South Korean venture, Homeplus, has seen an expansion since it began 11 years ago from 2 stores to a large division bringing in 4.5 billion pounds annually. Profits of Homeplus amount to 287 million pounds annually. They have grown from those very first two stores to 118 hypermarkets and 245 superstores to become the second largest retailer in South Korea.
In China, Tesco’s stores open more than a year where showing a 9.3 per cent increase in sales when compared to last quarter.
Philip Clarke, who will replace Sir Terry Leaky as chief executive in March and currently is Tesco’s Asia and Europe Director, described its global expansion divisions as an “increasingly important engine for growth”.
Tesco is the world’s 3rd largest retailer and its largest markets are Britain and then South Korea respectively. It has over 5,000 stores located in 14 countries.