Whats the future for Tesco Lotus?

[Robert24]

a few things to correct here:

1) Tesco Thailand is very profitable. After Tesco Korea is the second most profitable unit of Tesco

2) Tesco has been trying to sell some of their assets in order to boost their balance sheet after having lost a lot of money.

3) Tesco were in negotiation with CP group but it seems like they couldn't find an agreement on the price so Tesco decided to sell their Korea unit.

Whether or not they are still planning to sell their Thailand unit, is not known to me. And why CP wants to buy Tesco after they already own 7/11 and Makro, I don't fully understand unless they want to become a serious monopolist for retail in Thailand.

[newnative]

I shop at Tesco on Sukumvit and Big C South Pattaya and neither is run very well. Lately lots of empty shelves. They are making a ton of money but not spending much on maintenance. Big C parking lot car parking sun screens are in tatters or totally gone and often parking is tight as they rent some of the parking spaces to car sellers. Both rent out almost every square inch, including part of the entrance street at Big C, to vendors. The sidewalk to the side parking area at Tesco is totally blocked now by a vendor selling beds and mattresses. Zero respect for the store customers.

[Ulic]

I patronize the Tesco Lotus in Jomtien. Seems busy enough to me and has everything I am

looking for when I go. (Mostly food) I would like a wider selection of cheese, but I go to

Big C for that. So no complaints here and will continue to patronize that location.

[khunPer]

Some month back financial news mentioned, that Tesco’s Southeast Asian operations did Okay, whilst Europe is the problem.

CP All (7-elleven owner among others), which originally sold their Lotus brand and chain to Tesco – becoming “Tesco-Lotus” – offered to buy Tesco-Lotus back, last year I think, but got turned down by Tesco UK, as their Thai operations were not up for sale. CP All instead bought Dutch Makro.

However meanwhile situation may have changed – Tesco’s UK stocks still suffers being down from almost 4,50£ to less than 2£ – so Tesco-Lotus may be up for a takeover now...?

[elgordo38]

Given the number of new Tesco stores springing up everywhere in Thailand I can't see it having to much of problem in that department.

As for the UK it's far to established to be going anywhere soon.

It's like all industry or retail,there are highs and lows.

It would be nice to see Walmart come to Thailand and teach both big boys retailing 101

[bangon04]

I read somewhere recently that the Thai billionaire who used to own the Lotus part of the partenrship was interested in buying out Tesco should they ever need or wish to sell.

LOL !!! Thaksin Shinawatra ?

No CP group actually

such a pity that Big C is not able to buy out the Tesco stores too, and then we would have "happiness" across the retail sector.

[elgordo38]

I read somewhere recently that the Thai billionaire who used to own the Lotus part of the partenrship was interested in buying out Tesco should they ever need or wish to sell.

With their high price monopoly I guess he would be. Interesting comment on computers quote Computers require current input unquote. Immigration could learn something from this statement sorry to stray off topic.

[mercman24]

i was in RAMA 4 tesco Lotus a couple of weeks ago, my bill came to 520, i gave her 1020, that totally threw the girl on the checkout,

[mercman24]

ALDI or LIDL would be great, that would knock them sideways

[beerzy]

Write up here for reasons behind the sale but no mention of the Thai business - http://www.bbc.com/news/business-34171937

More interesting one here mentioning other divestments and the Eastern European businesses- http://www.thisismoney.co.uk/money/markets/article-3225473/Tesco-s-Korean-sell-Supermarket-checks-foreign-deal.html

Then 3 days ago a comment here about their other Asian businesses and a comment about an approach to buy the Thai business- http://www.thisismoney.co.uk/money/news/article-3232037/Tesco-s-remaining-Asian-business-block-sale-Korean-chain-week.html

you may have missed this announcement by Tesco in the last week.

http://www.bangkokpost.com/business/news/689020/tesco-lotus-vows-to-keep-faith-in-thailand

[Jimmpy]

I live in Shapan Khwai and don't have a Tesco superstore. The local small ones are almost worthless !!!!

[TechnikaIII]

Tesco here in Pattaya is a waste of space,they are always out of everything as far as I can see its just poor management and ordering anything populR is out of stock half the time

A company is only as good as its staff,something which is a big problem here I'm afraid.

No, don't blame the staff. It's management. If the manager of any business is not on the floor setting the pace, the mood, the work ethic, everything, then there is vacancy for trouble.

If there's trouble aboard a ship, it points all the way to the captain.

"Big problem here" ?

[aronp1]

Tesco Superstore I went to this morning in my home UK City clearly has no problem as packed out

Right, Tesco Lotus only really has one competitor and that's Big C. With that, Tesco Lotus will remain strong in Thailand. Not to mention cheaper prices than Big C and providing product brands that Big C doesn't offer. So calm down Tesco Lotus is here to stay. Mai bpen hăa.

[metisdead]

A post containing racist slurs has been removed.

[phrodan]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

[Jonmarleesco]

The stock problem is more likely a head office or logistics problem. If you had anything to do with FMCG you would know that the inventory is mostly controlled by computer.

Oh, problems are invariably staff linked, whether stock or some other issue. Essentially, Thais cannot think out of the box, unless it involves a scam. So look for resolution to a simple service issue, or query, they can't address it unless it's in the rules; query a wrong price at the register, and some moron will try 'adjusting' the shelf price, or even the stock levels. And, yes, I have experienced just that, at Big C.

For the record, some companies' people are good, AIS's service centre staff being a case in point.

[Wombat6]

Tesco here in Ranong was ok when it opened but a change in management soon changed that. They must have had a policy to reduce lines resulting in a huge lack of choice of goods. If you want cooking oil or baby food ,Potato chips etc, this is the place to come. If you want Coffee (Ground), Tinned food (Like Spaghetti, Braised Steak/onions, Tinned tomatoes Fresh/frozen Beef and just about anything farang, you would be wasting your time ). I did take the time to write to their head Office in Bangkok and itemised the lines that had been cut...no reply.. it would have to be the worst Supermarket that I have experienced (Oh,....and I do know what I am talking about having managed Supermarkets )

[topt]

Tesco here in Ranong was ok when it opened but a change in management soon changed that. They must have had a policy to reduce lines resulting in a huge lack of choice of goods. If you want cooking oil or baby food ,Potato chips etc, this is the place to come. If you want Coffee (Ground), Tinned food (Like Spaghetti, Braised Steak/onions, Tinned tomatoes Fresh/frozen Beef and just about anything farang, you would be wasting your time ). I did take the time to write to their head Office in Bangkok and itemised the lines that had been cut...no reply.. it would have to be the worst Supermarket that I have experienced (Oh,....and I do know what I am talking about having managed Supermarkets )

So you are complaining as they are not specifically catering to their "farang" customers.........

[MAJIC]

With 4000 Superstores worldwide,I doubt Tesco Lotus,is of any consequence or worry to the Tesco chain! the best thing that could happen for the customer is if? lotus could be sold off to a company who knows how to run it like a proper Supermarket,who understands the importance of stocked up shelves,variety,and customer,satisfaction!

[MAJIC]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

Tesco have been approached re their Thai stores - 1800 stores, do you have evidence of this claim? 1800 stores seems way too many?

[Robert24]

With 4000 Superstores worldwide,I doubt Tesco Lotus,is of any consequence or worry to the Tesco chain! the best thing that could happen for the customer is if? lotus could be sold off to a company who knows how to run it like a proper Supermarket,who understands the importance of stocked up shelves,variety,and customer,satisfaction!

as I mentioned before, Tesco Thailand is highly profitable and is a great asset in the portfolio of Tesco. Saying it is not important is completely wrong. Did you see how much they got for their Korea operation?

[Robert24]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

I agree with your sentiment, but if you are desperate for capital, sometimes you have no choice but making a tactical move and sell one of your assets at a good price to bolster your capital situation.

[shaurene]

Tesco here in Pattaya is a waste of space,they are always out of everything as far as I can see its just poor management and ordering anything populR is out of stock half the time

A company is only as good as its staff,something which is a big problem here I'm afraid.

Ye, quite right. I am 74 I started work at 15 riding an order bike with big wicker basket in the front, for a large grocery store in Mersyside, I went onto the counter sales and also learnt in the delicatessen area, boning out pig bacon sides and slicing on the machine. Later the company was taken over by Tesco. When I was 23 I became the youngest Supermarket Manager, with them for 14 yrs at this. In them days we had sales reps from all the company's come to the stores, take stock of their products and show the managers who would re order, we very rarely ran out of any thing. No computers in them days all done with the head.

[louse1953]

Yes your right about staff absolutely no idea ask questions and typically run away, it's not stock problem you can't train people who don't want or can't speak even basic English, everyone raves about Asian, wait and see the lost Los

Doh,Rog,i don't know if you know,but you are in Thailand.They dont have to speak English,you have to speak basic Thai.

[louse1953]

Thailand is just lazy, thats why things break down, aisles full of staff yakking

Ask them anything, even in Thai and they just point.... over there ....

What do you want,take you by the hand and show you the item.Do they hold your hand when you cross the road.Maybe your mummy should come out and help you.

[topt]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

Tesco have been approached re their Thai stores - 1800 stores, do you have evidence of this claim? 1800 stores seems way too many?

From the Bangkok Post article mentioned by beerzy in post #40

Tesco Lotus operates about 1,400 stores, of which 1,100 are Express outlets.

[phrodan]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

Tesco have been approached re their Thai stores - 1800 stores, do you have evidence of this claim? 1800 stores seems way too many?

Evidence? CSI TV strikes again.

http://www.thisismoney.co.uk/money/news/article-3232037/Tesco-s-remaining-Asian-business-block-sale-Korean-chain-week.html

From the article -

"It emerged earlier this year that Thai billionaire Dhanin Chearavanont approached Tesco about buying the 1,800 Tesco Lotus stores in Thailand."

Edited September 17, 2015 by phrodan

[phrodan]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

I agree with your sentiment, but if you are desperate for capital, sometimes you have no choice but making a tactical move and sell one of your assets at a good price to bolster your capital situation.

Yes - but the price wasn't good.

[nong38]

So if Tesco need the cash it looks like either CP group or Mr Lotus then!

From what I see in my locale, we had 3 superstores, one closed and the other 2 are not busy. The newest one I went to once and they had no chicken in any shape or form to sell, needless to say have not been back!

They are poorly run, like most shops here and I do wonder if Thais would notice and appreciate if they were run to Western standards.

The future of Tesco despite its illustrious past in the UK is not clear, they seem to have lost their way in the UK, losing out to LIDL and ALDI in the value end and to Waitrose and M & S in the premium end and it is perhaps why they need the money to re-structure their operation, sadly that often means selling assets you really did not want to, which is where Tesco Lotus might come into the picture.

[MAJIC]

I'm a Tesco shareholder and I'm annoyed that they sold the South Korean operation. It was a cash cow - and as rare as it is for a UK company to do well in overseas markets - that disposal was crazy.

Tesco have been approached re their Thai stores - 1800 stores, and the mooted price is £900 million. Tesco need to refuse this advance - the fundamental problem is in the home market - it's crazy selling off foreign cash cows to make up for the deficincies in UK management.

Tesco have been approached re their Thai stores - 1800 stores, do you have evidence of this claim? 1800 stores seems way too many?

Evidence? CSI TV strikes again.

http://www.thisismoney.co.uk/money/news/article-3232037/Tesco-s-remaining-Asian-business-block-sale-Korean-chain-week.html

From the article -

"It emerged earlier this year that Thai billionaire Dhanin Chearavanont approached Tesco about buying the 1,800 Tesco Lotus stores in Thailand."

Thanks for the Info!