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China is the second largest grocery retail market in Asia after Japan. Grocery retailing in China offers tremendous scope and potential for the existing players and new entrants to this sector. Their business models are based on the varied tastes, cultures and vast regional expanses of China, which supports diverse retail formats like: (1) convenience stores; (2) supermarkets; (3) hypermarkets; and (4) department stores. There is much scope for modern format retailers to increase penetration in suburban areas and second tier cities. The ability of retailers to interpret the changing needs of consumers, and tailoring the service for the intricacies of the market, is vital for future growth. Many international and local players like Carrefour, Wal-Mart, Tesco and Lianhua are in the fray. Tesco, the UK-based grocery retailer is adopting a multipronged stance in China. This case study helps to analyse the multiformat strategic approach of Tesco and whether it would succeed in China.