Tesco has refused to be drawn on reports it is mulling expansion into Russia.
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Real-estate advisers in Moscow have reportedly held talks with the UK supermarket giant and have revealed there could be plans for a new venture.
In November last year, chief executive Sir Terry Leahy told The Times of Tesco’s limited growth options in the UK and how the company refused to rule out possible expansion in Russia. “We keep looking at everywhere,” he told the newspaper.
Today (28 March), a spokesperson for Tesco’s international operations was tight-lipped over the speculation from Moscow.
She said: “We do look at various markets and certainly wouldn’t rule it out but we can’t comment on rumours.”
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By GlobalDataRussia is seen as a key emerging market for multinational retailers but local groups are also showing signs of confidence in the country’s booming oil-rich economy.
If Tesco was to enter the Russian retail market it would face competition from X5 Retail Group, the country’s largest retailer by sales, who this week signalled it will continue to expand in 2008 with plans to buy out a key licensee of its discount stores.
Local rival retailer Magnit has also recently set the ball rolling for its own expansion with plans to raise funds by listing on the London Stock Exchange.
