Tesco Thailand is not for sale, the parent company’s CEO Dave Lewis has committed during a visit to Bangkok. “I’m here to look at the expansion plans.”
After Tesco UK sold off its Malaysian subsidiary in 2015 and its Turkish operation earlier this year, there was considerable speculation the Thai operation may also be divested as the embattled retailer repaid mounting debts and restored its balance sheet.
But in recent quarters the company has reported improving sales and margins and the Tesco Lotus operation in Thailand – which now boasts 1800 outlets ranging from hypermarkets to convenience stores – performs strongly in the group’s remaining portfolio covering 11 markets.
Lewis, on a visit to Thailand, says the company now plans to increase its investment in the country during the next few years and sees growing opportunities there.
“What you will see over the next three to five years is continued investment,” Lewis told the Bangkok Post in an interview. “If anything, we have an opportunity to invest more now than in the past.”
He categorically denied the chain may be sold.
“I want to be very clear – our commitment to Southeast Asia, our commitment to Thailand is absolute and not changing. The business is not for sale.”
Lewis told the Bangkok Post that Tesco wants to expand its store formats to serve as marketplaces for small businesses and communities.
“If you look at the history of Tesco, this is how we built our business in the UK,” he said. “Our relationships with suppliers go back 50, 60, 70 years. They have grown as we have grown. So one of the things that we think we can do well is incubate and grow businesses.”
