World's third-largest retailer Tesco says it will exit Japan, selling its 129 small stores in the region amid 'modest losses'; CEO says company cannot build a business of sufficient scale there

LONDON , August 31, 2011 () – Tesco PLC, the world's third-largest retailer, says it is giving up on its Japanese business.

Tesco said Wednesday that it plans to sell its 129 small stores in the Tokyo region, which operate under the Tsurakame, Tesco and Tesco Express formats.

In its latest annual report, Tesco said the Japanese business was making "modest losses."

Chief Executive Philip Clarke says that the company has concluded that it cannot build a business of sufficient scale.

The company says it will begin the sale process in the next few months.

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