UK's Tesco plans $565 mln spend on Malaysian stores http://today.reuters.com/news/articlebusiness.aspx?type=consumerProducts&storyID=nKLR341627&from=business
Thu Dec 7, 2006
KUALA LUMPUR, Dec 8 (Reuters) - Britain's biggest retailer, Tesco Plc (TSCO.L: Quote, Profile, Research), plans to spend over 2 billion ringgit ($565 million) over three to five years in Malaysia to open new stores and upgrade a newly acquired chain, a newspaper said on Friday.
Tesco announced this week that it had bought Malaysia's Makro Cash & Carry chain of hypermarkets for an undisclosed sum. Tesco already had 11 hypermarkets and three smaller stores in Malaysia.
The eight stores it bought from Makro will be renamed Tesco Extra, aimed at retail consumers and small businesses, the Business Times said, citing Tesco Chief, Chris Bush.
"Tesco Extra will combine the very best of Makro and the very best of Tesco as we know at the moment, and it's designed to meet the needs of small businesses, families and individuals all under one roof," Bush was quoted as saying.
Tesco wants to challenge for the position of number one retailer in Malaysia, and its purchase of Makro will help it in its quest, Bush was cited as saying. The biggest retailer, Giant, has over 200 big and small stores and pharmacies, the paper said.
"I think with the additional footage, the additional square metres that we are going to get with this acquisition, it's going to put us in a very strong position to be close to number one in retail," Bush was quoted as saying by the paper.
Malaysia's economic growth may exceed the official target of 5.8 percent, Second Finance Minister Nor Mohamed Yakcop said on Thursday, adding that the government is also confident of meeting its economic growth target of 6.0 percent for 2007.
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