Tesco has signalled plans for further expansion in China's Shandong province with a lease agreement on a store in the city of Dongying.

The UK retail giant, which has 66 stores in China, told just-food yesterday (1 October) that it had secured a lease on a store in Dongying - one of China's so called "third-tier" cities - although it had yet to open a store there.

Tesco is looking to expand its operations in Shandong and Fujian provinces and already has stores in China's second-tier and third-tier cities, into which both domestic and foreign retailers are looking to expand.

The company, which is competing with the likes of Wal-Mart and Carrefour, as well as domestic chains including Wumart Stores, is also trialling its Express format in China's north-east.