Tesco entered Turkey in 2003 when it acquired the Kipa chain, and quickly expanded its presence there, particularly in large format stores. At the end of the 2006 financial year it had 8 stores with an average store size of 75,000 sq ft. By 2013 Tesco had 191 stores, including 56 hypermarkets.
Tesco also invested in the infrastructure for a much larger business in Turkey, to back up its expansion plans. In 2007 Tesco opened a major distribution centre in Yasibasi.
Tesco has been forced to scale back its ambitions. It has dropped plans to open large stores in the East of the country amid intense cost inflation and tough competition. Total sales rose 13% last year but underlying sales were flat and the business made a loss amid high cost price increases.