Considering Tesco's record of successful retail operations in global markets, its failure in the Japanese market and subsequent withdrawal surprised many people. This study aims to investigate the main factors for Tesco's failure in the Japanese market. We focus on the company's localized merchandising (MD) strategy, utilizing the Structure-Conduct-Performance (SCP) paradigm of industrial organization. Based on several interviews and secondary data, this study summarizes the key reasons why

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... o could not develop a localized merchandising strategy. In particular, it investigates Tesco's partner selection, store size and format, centralized merchandising authority, and private brand-focused (PBfocused) merchandise assortments. The findings and suggestions of this study will help retailers internationalize as well as help those who want to thrive in the Japanese market.