Tesco has acquired a minority stake in Asian general merchandise etailer Lazada, which sells products including electronics and clothing.
Tesco multichannel director Robin Terrell said the retailer has invested “tens of millions” in southeast Asian online retailer and marketplace Lazada, Bloomberg reported.
The grocer joins investors including Verlinvest SA and Investment AB Kinnevik as backers of Lazada, which was founded by German internet incubator Rocket Internet.
Lazada sells consumer electronics, clothing, books, toys and homewares across Thailand, Malaysia, Indonesia, Vietnam and the Philippines. Tesco already has operations in Thailand and Malaysia.
Terrell said: “There are a number of things we can do from a customer and product perspective, whether it’s sourcing or supply chain.”
He also said there are opportunities for cross promotion of products as smartphone usage increases and the use of online shopping increases.
Terrell added that he is not concerned that the investment in Lazada will cannibalise existing international general merchandise sales as “these markets are so early that there is more than enough room for multiple customer offers”.