Tesco to leave Japan after nine years

Supermarket giant Tesco yesterday sealed a deal to leave Japan, nine years after establishing a foothold in the country.

The group has agreed a deal with Aeon, Japan’s largest retailer, which will see Tesco sell half its shares in the business for a nominal sum, before investing around £40 million in the joint venture to fund its restructuring.

Chief executive Philip Clarke said the group would have “no further financial exposure to the Japanese business or its operations” following the deal, which is subject to regulatory approval.

Tesco entered Japan in June 2003 when it paid £173m for C2 Network. The business how runs 117 small stores, mainly under the Tesco, Tesco Express and Tsurakame brands in the Greater Tokyo area.

The group had announced its plans to pull out of Japan last August, after sales in the country fell 8.1 per cent in the year to February 2011.