Tesco entered the notoriously tough Japanese retail market in 2003. They focused on small-format convenience stores, owning 114 stores by 2008. The average store size is 2,912 sq ft – the only country with smaller average store size than the UK. Despite plans to have 144 stores open by the end of 2007/8, Tesco ran into difficulties and failed to capture more than 0.1% of the retail market. Japan.
By 2011 Tesco had clearly failed to gain ground in the Japanese market and in June 2012 a 50% stake in it's 117 stores were sold to Aeon at a significant loss.