Tesco Lotus to invest US$215 mln in Thailand

Tesco Lotus to invest US$215 mln in Thailand

Despite a slowdown in the Thai economy, Tesco Lotus said it would invest about Bt7 billion (US$215.5 million) and create 7,000 jobs in the kingdom this year, according to Jeff Adams, Tesco's chief executive officer. Tesco Lotus sales have missed their target because of the prevailing poor economy, but stated that the company will continue to build more branches this year. The plan to invest (almost the same capital as last year) is expected to create 7,000 new jobs.

Tesco Lotus has encountered several protests from small local retailers who have charged that its expansion, especially upcountry, has hurt their businesses while the Thai government is working on a retail business law.

Established in 1998, Tesco Lotus was a joint venture of the Charoen Pokphand Group and Tesco. However, facing criticism over the growth of hypermarkets in Thailand, the CP Group sold its shares in Tesco Lotus in 2003, though it did retain interest in Tesco Lotus in China. The Tesco Lotus hypermarket stores in Thailand are operated by Ekachai Distribution System Co Ltd.

 

Published 23-04-2007 (09:29) by Karen Willoughby

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