Tesco said it hopes to double returns through the purchase of more regional products, additional stores

Tesco said it hopes to double returns through the purchase of more regional products, additional stores

UK retail giant Tesco has outlined plans to double returns from its Central and Eastern European business.

During an investor and analyst trip to Central Europe yesterday (22 June), the retailer said it hopes to double returns through the purchase of more regional products, additional stores and offering more services. Within this region, Tesco currently operates in the Czech Republic, Hungary, Poland, Slovakia and Turkey.

In April, the UK-based retailer revealed a target to boost company-wide returns to 14.6% by 2014/15 from 12.9% in 2010-11. Yesterday, Tesco said it aims to double returns in Central and Eastern Europe by 10% over the same timeframe.

In order to achieve this, Tesco has outlined plans to expand its smaller format stores and open 21 more Extra stores. It will also launch online operations in Prague and Warsaw during the current financial year, with plans also for Budapest and Bratislava. Around 200 more stores are planned for the Zabka franchise in Prague and ten new depots throughout Central Europe.

The firm said it has also started primary trials with multi-national suppliers in Central Europe.

In Poland, Tesco will also relaunch its financial services business this financial year.

To view the presentation slides from the analyst conference, click here.