UK-based grocery retailer Tesco is aiming at significant expansion of its selling space outside its home market, with a large increase planned for South Korea and a near doubling of selling space in Central Europe. The retailer said it was aiming to grow selling space in Central European markets to 4.1 million square feet by 2014/15, up from around 2.2 million now.

Most of this new space would be focused on expansion of its smaller formats and compact hypermarkets. Tesco said hypermarket refurbishments in Central Europe included the addition of at least 5,000 new products along with services such as phone shops, opticians, pharmacies and photoshops. It has also introduced ‘worlds’ including Electrical, Home and Pet & Baby to refurbished hypermarkets.

In South Korea selling space will be increased to 1.455 million square metres by 2013/14, from 1.014 million square metres currently. It plans to do this through its multi-format strategy featuring what the retailer terms standard hypermarkets (7,000 to 9,500 square metres), compact hypermarkets (5,000 to 7,000 square metres) and Super Express.

Tesco is also considering developing a superstore format (2,000 to 5,000 square metres) focusing on food along with an Express mini format (150 to 200 square metres). In addition, the retailer is in the process of reviewing the potential introduction of a value store concept to be located in small towns offering local fresh food along with a Tesco Homeplus grocery and non-food offer.

Extending its convenience store concept to encompass smaller outlets of 100 to 150 square metres is also under consideration. Tesco now has 245 Express stores including 23 which are franchised, along with 118 hypermarkets. Tesco Homeplus has grown sales at an average of 42% per year over 10 years.