Tesco has developed a mini hypermarket format as part of its aggressive plan to accelerate store openings overseas. The mini-hypers still boast sales areas of around 75,000 sq ft compared with the 100,000 to 120,000 sq ft Tesco normally opens. Deputy chairman David Reid said the new format still contained all the essential features of its larger cousin. However, he said the key benefit was that, as they were cheaper, they allowed Tesco to open in smaller towns. The first mini-hypers have opened in Hungary and more are due to be built in the second half. Smaller hypermarkets are pencilled in for Poland, Czech Republic and Slovakia. Reid said Tesco's priority in any new country was always to try to take the best hypermarket locations. Once that was done scale could be achieved and central distribution implemented. After that, new store formats could be introduced. "It gives us the opportunity to add supermarkets if we wish and in some markets it's quite likely ­ but there's nothing firm on that," Reid added. At the other end of the scale, however, Tesco starts trials of its Express stores in Thailand next month. If that trial goes to plan, the multiple could open as many as 150 Express c-stores in Bangkok. He also revealed Tesco's international business was on track to hit all targets ­ and would be operating 101 hypermarkets by the end of 2002. The international business, which includes the Republic of Ireland, central Europe and Asia, saw first-half sales rise 46% to £1.7bn while profit was up 120% at £33m. Reid said the multiple continued to look at options for China and Japan ­ but ruled out any bid for troubled chain Japanese chain Mycal, which has filed for court protection. l Reid revealed the strike action in Ireland earlier this year would cost Tesco £3m. {{NEWS }}

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