Tesco plans to open Tesco Express in Shanghai.
After multiple media reports of the impending opening, a representative from Tesco Shanghai says that it is true that Tesco will open a convenience store in Shanghai, but the detailed time is not available. Financial Times reported that Tesco will open the first convenience store in February 2008.
The competition in convenience store section in Shanghai is very fierce. By 2007, Shanghai had had more than 4,500 convenience stores. Apart from 7-Eleven, other foreign invested convenient stores have all entered Shanghai market. Facing the serious competition, Tesco will adopt a different mode. Instead of selling various fast-moving consumer goods, Tesco Express will mainly offer vegetables and food to community residents.
In Beijing, Tesco has no plan to open convenience stores. Gao Feng, a representative from the public relations department of Tesco Beijing, says the company's strategy in Beijing will still focus on comprehensive supermarkets. Since Tesco's entry of Beijing in 2007, it has opened two marts.
At present, Tesco owns 52 comprehensive supermarkets in China and the company plans to invest RMB300 million to open 10 more supermarkets each year.