Tesco plans £1.4bn expansion

Tesco is to spend £1.4bn on an international expansion programme.

The UK's largest supermarket chain is aiming to create 70 superstores in Eastern Europe and Asia.

It's part of a long-term strategy to invest outside the UK to reduce the group's dependency on the domestic market.

Deputy chairman David Reid says: "If you stay in the UK as a market leader, your growth will be limited.

"Our stores are up and running, but this is just the beginning. We will be expanding even more aggressively next year."

British sales growth has slowed over the past three years, with last year's figure of 7.4% comparing with 12.4% in 1998, while international sales have grown by almost 40% over the last two years.

Tesco already owns more than 100 outlets in Hungary, Poland, the Czech Republic and Slovakia, including 36 superstores.

Reid says: "Many people said we were late moving into central Europe, but the fact is we're moving into a market-leading position.

"One of the things we have benefited from is focus. If we scale quicker, we get to market leadership quicker."