The UK based retailer Tesco is planning on expanding its operations in India, post the clearance of FDI in multi-brand retail. Reportedly, talks are already on with the Indian partner Tata. The focus will be on expanding into Mumbai and Bangalore, which have populations of 31.4 million and 9.5 million respectively.
Tesco had entered India in 2008, in partnership with Tata. In 2011, the Company planned to open 50 hypermarkets under Tataís Star Bazaar brand by 2013.
Speculations are that the recent opening up of the markets for foreign direct investment could see Tesco launch its own brand of shops in partnership with Tata.
Tesco has reported a flat performance in UK, with a 0.6% drop in like-for-like sales, excluding petrol and VAT, in the 13 weeks to November 24. In USA, Tesco is likely to close its Fresh & Easy chain across California, Arizona and Nevada. The Greenhil bank has been appointed to lead a strategic review of the 199 Fresh & Easy shops in this region.