JAPAN: Tesco prepares Japan exit with Aeon JV
- Tesco plans phased exit of Japanese market
- Aeon will take 50% of Tesco Japan
- Tesco to invest GBP40m in JV prior to full withdrawal
Tesco has confirmed details of its planned withdrawal from the Japanese market, which was initially announced last year.
Through its formation of a joint venture with Japanese retailer Aeon, the company will gradually hand over control of its Japanese operations. The deal allows Tesco to cap its exposure to Japan with the agreed investment of GBP40m (US$62.7m) to restructure operations.
While Tesco does not publish earnings details for individual countries, it is believed the unit is loss-making and analysts have estimated the group made a loss in the region of GBP11m in fiscal 2011.
The move is a reflection of the difficulties associated with retailing in Japan: the highly-competitive, well-developed retail landscape has been shaped by poor consumer sentiment and a bleak economic landscape for a number of years and retailers have seen sales stagnate as a consequence.
Textile-making countries came up against a range of labour, economic and environmental issues in 2012, including the worsening Eurozone crisis which dampened demand in key export markets. While some s...
Faced with continuing challenging trading conditions in 2012, retailers responded with a number of different strategies to try to grow their businesses. International expansion, new and larger format ...
US brands and retailers were baling out of Bangladesh even before the fire at the Tazreen Fashion factory killed more than 110 people at the end of last month. And given the subsequent criticism aimed...
The most read stories on just-style this week include Delta Galil USA acquiring the LittleMissMatched brand, Sri Lankan apparel manufacturers facing continuing challenges, and Ethiopia's ongoing effor...
Global brand management business Cherokee has seen its third-quarter profits jump 98% on the back of rising revenues and lower costs....
UK supermarket retailer Tesco said its clothing division has continued to "outperform the market" as the company recorded a 2.4% increase in sales over the third quarter....
- Why should brands care about China cotton?
- New Gap CEO set to tackle “aesthetic issue”
- Low labour cost countries linked to highest risks
- Falling euro adds to Bangladesh production woes
- China cotton: implications and opportunities
- M&S Asia head quits as China stores to close
- Gap names new design head amid mixed Q4
- US labour concerns at Honduras apparel makers
- Pay rise mulled for Sri Lanka garment workers
- JC Penney share price falls on Q4 loss
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Outdoor performance apparel: peaks, valleys, and green fields
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Global market review of swimwear - forecasts to 2019