UK retail giant Tesco has said its expansion efforts in Malaysia remain focused on growing its hypermarket operations.


 


Responding to rumours that the company is mulling entering the convenience sector in Malaysia, a spokesperson for the group told just-food that hypermarkets are Tesco’s growth driver in the market.


 


“Our current focus in Malaysia is to deliver a great offer for customers through our hypermarkets,” the spokesperson said.

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While Tesco operates a number of formats internationally, the company’s “model” in Malaysia has been larger hypermarket operations, the spokesperson said.


 


One potential barrier to Tesco’s entry into convenience retailing in Malaysia is the complex legal framework that places restrictions on operations owned by foreign retailers.


 


Reports had suggested that Tesco was considering setting up franchised convenience outlets to overcome this issue.


While Tesco did not rule out the possibility, declining to comment on “rumour and speculation”, the company emphasised its commitment to its large-scale model.