LONDON, Nov 11 (Reuters) - Tesco, the world's third-biggest retailer, plans to enter the Chinese provinces of Shandong and Fujian next year to extend its reach along the full length of the country's eastern coast.
In a presentation on its Web site, the British supermarket group also said it had a "strong" programme of store openings for 2009 for its existing Chinese base in the northeast province of Liaoning.
On a trip for analysts and investors to its Asian businesses, Tesco said it eventually planned to enter all 14 of Liaoning's cities.
It is currently market leader in the province of 42 million people, with 11 stores, including 5 hypermarkets in the provincial capital of Shenyang, the tenth largest city in China.
Tesco has doubled the size of its Chinese business since 2004, but it still accounts for only a small proportion of sales -- 702 million pounds ($1.1 billion) in the year ended Feb. 23 out of a group total of 51.8 billion.
"Management structures and the infrastructure are in place to drive a sustained step-up in store openings and activities with the opening programme rising from circa 10 outlets per annum to circa 30 over an unspecified time frame -- we assume by 2013-15," said Shore Capital analyst Clive Black in a research note written from the company trip.
He said much remained to be done, but that a rapidly growing, urbanising economy offered "a clear strategic opportunity."
Shandong province has a population of 94 million people, while Fujian is home to 34 million.
At 0910 GMT Tesco shares, which were hit on Monday by news of a dip in underlying sales at the group's South Korea business, were up 0.4 percent at 324 pence, valuing the company at about 27 billion pounds. (Reporting by Mark Potter; editing by John Stonestreet)