Tesco Purchased More Than 80% Of Its Senior Executives.

At the end of May 2014, Huarun venture officially announced that the joint venture agreement signed by Huarun, its parent company and Huarun, has been approved by the Chinese government. In the future, 135 stores will be renamed "Huarun 10000".

However, after six months, NetEase finance and economics recently learned from Tesco China that since the acquisition of Tesco by Huarun, up to now, China's top middle level executives have been left behind.

NetEase finance today called Huarun venture, and its responsible person confirmed to NetEase finance that the above information is true.

"Compared to the establishment of a joint venture company, Tesco China has left over 80% of its middle and high posts, but we do not have statistics on specific numbers."

Zhai Meng (a pseudonym) is a shopkeeper of Tesco, a supermarket in North China. He submitted his resignation to Tesco in the second half of 2014.

For leaving China from Tesco, he told NetEase finance that although Huarun promised that it would not make wage adjustments in the first half of China's middle and high level in a year, nor would it carry out staff optimization actions such as layoffs, he chose to quit from Huarun Tesco, considering the long-term development of his career.

"TESCO is a foreign company, and Huarun is a traditional local retail enterprise. There is a huge cultural difference between the two sides. Although the two sides set up a joint venture, it is self-evident."

"From the internal management and rules and regulations, the two sides are not equal, the original TESCO should be regulated more."

In addition, Zhai also pointed out to NetEase finance that the salary system of domestic retail enterprises is generally lower than that of foreign companies in terms of salary.

"Although Huarun promises not to adjust its remuneration at the top level in one year, it will still make adjustments in the long run".

According to NetEase finance previously reported that in August 2013, TESCO and Huarun group's Huarun venture jointly announced that it will set up a retail joint venture.

TESCO has injected its Chinese business and cash into a joint venture. Based on this, Huarun has 80% of the joint venture company, and TESCO will hold 20% of the joint venture company.

In May 29, 2014, Huarun venture officially announced that the joint venture agreement signed by Huarun, its parent company and Huarun, has been approved by the Chinese government. In the future, 135 stores will be renamed "Huarun 10000".

The joint venture's upcoming integration business includes Huarun Wanjia in mainland China.

There are about 3835 Direct stores and 135 Tesco outlets in China, TESCO.

Huarun is expected to be newly established.

Annual sales will reach about 10 billion pounds, or about 95 billion yuan.

For the acquisition, Chen Yuefeng, a senior retail analyst, told NetEase finance that Huarun's mergers and acquisitions have always been strong and resolute, and they are "digested" in Huarun's system by buying companies from store labels to business structures and important posts.

In addition, entering the second half of 2014,

Shutting down a number of stores in Tesco, last October 31st, Shandong Weifang Tesco shop, Shandong Tesco Dongying east two store, Guangdong Tesco Jiangmen shop, Tesco Ji'nan Second Ring East Road shop, Tesco Qingdao Jimo shop has officially closed down.

According to Li Ruxiong, chief financial officer of Huarun, Huarun Wanjia parent company, Tesco's layout in China is quite large and there are some overinvestment phenomena. After the merger, Huarun will turn off less than 10% of Tesco Tesco shops.

According to media reports.

According to Huarun's "asset convergence and LOGO integration scheme" for Tesco, the integration of assets, personnel and management systems will be completed in the end of 2014. The second stage is to adjust and optimize the first stage management system integration results by the end of March this year, and improve the operation of Tesco stores.

According to the assumption of Huarun Wanjia, Tesco continued to operate a large number of losses in the stores. If there is a significant change in the first quarter of this year and the business situation has entered a virtuous circle, the integration of the two sides will enter the final third stages starting from April this year, that is, the stores will enter the stage of reloading and reopening, and it is expected to be completed by the end of March 2016.