Tesco To Increase Overseas Expansion to The Algarve

Mon, 30 Oct 2006
 
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Supermarket giant Tesco is planning on opening up to 17 stores in the tourist hotspot in the Algarve .

It is believed that Tesco is targeting British holidaymakers and if plans to expand are successful then the Algarve would follow Tesco’s aggressive strategy to become an international retailer . The company is believed to be in negotiations with the Portuguese government to open a series of stores along its southern coastline.

Rival companies such as Aldi and Lidl have already established themselves as European supermarkets and sources suggest that Tesco is eager to tap into the lucrative British community and middle class holidaymakers .

The company have dramatically increased their overseas expansion plans in recent years, with 149 stores being opened in the last six months.

Sir Terry Leahy, the Chief Executive for Tesco, said he would be opening a further four million square feet by the end of the year. "We're talking here about a 20 per cent increase in our total international selling space in a single year. That's pretty incredible growth and more than the market had been expecting," he said.

Stores in Slovakia, Poland, the Czech Republic and Turkey can be found across Europe, but it hasn’t all gone Tesco’s way in the past. Their Taiwan store failed to draw in the customers, while the Hungary store has been hampered by the economic gloom, and in India the government has been protectionist about foreign retailers coming in, blocking any attempts from Tesco to enter the market.

Tesco’s expansion strategy has been very flourishing so far. The strategy targets countries where it can 'hit the ground running', and then move quickly to establish itself as the first or second biggest company through a blend of acquisitions and rapid store building.

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