Tesco's Kim's Bid Underscores Korean Retail Potential

We maintain that markets offering solid existing spending levels and reasonable medium-term growth prospects remain vital components of any expansionary consumer multinational's arsenal. They help to support earnings and to fund expansion into those markets offering stronger long-term growth prospects, but lower immediate returns on investment. UK giant Tesco's decision to bid a reported KRW300bn (US$247.4mn) for South Korean supermarket chain Kim's Club Mart underscores this view. The acquisition represents an excellent opportunity for the retailer to consolidate its position in the attractive Korean retail market while driving further into Asia's ultimate high-growth retail destinations such as China and

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