Tesco expands in South Korea

TESCO intends to open 11 hypermarkets in South Korea over the next 12 months, taking its investment in the country to £1bn by the end of 2002. The news comes a day before Tesco opens its 100th overseas hypermarket, also in Korea.

Deputy chairman David Reid said: 'Passing the landmark 100 hypermarkets figure reflects how far we have come since opening our first international hypermarket in 1997. We are well on track to achieve our target of 45% of all group floor space outside the UK by 2002.' Of Tesco's 900-plus stores, 200 are overseas in countries as far apart as Thailand and the Czech Republic.

The pace of international expansion has speeded up and only last week the group began a plan to develop 15 hypermarkets in Malaysia.

Tesco, which delivered sales of £22.8bn last year, tries to tap in to local culture when opening stores abroad. Products are almost all sourced locally and staff are largely recruited from the area.