Tesco is sending Michael Fleming, its business development director, to Japan as the country’s chief executive, suggesting it is looking to expand more aggressively in the world’s second-biggest economy.

The move comes a year after Tesco began rolling out Express-type stores in Japan, suggesting that the retailer has finally got the format right after four years of trying.

Tesco, which announced plans to open Tesco Express-style stores in Japan a year ago, has rolled out at least 30 outlets over the past year, taking it to an estimated 150 stores.

The British chain entered the Japanese market in 2004 through the acquisition of C Two-Network, which operates the Tsurukame chain of discount supermarkets.

However, the venture was dogged by early setbacks: Scott Wheway quit as chief executive of the Japanese venture in 2004 to join Alliance Boots, while his successor, Ken MacMeikan, never even made it to Japan, quitting Tesco in favour of J. Sainsbury before taking up his Tokyo-based post.

Japan delivered the poorest returns on investment of Tesco’s overseas markets in the financial year to February 2007. Cash return on investment was about 7 per cent, against returns of 15 per cent or higher in Thailand and South Korea. Japan was delivering returns of about 10 per cent in 2005-06.

“Tesco really struggled to get the right people in place,” said one analyst. “They were forced to extend their feasibility study there, but now it seems that they are really committing to the business.”

Tesco opened its first own-branded store in Tokyo just less than a year ago and now has an estimated 50 Tesco Express stores in the country.

Japan has proved a difficult market for some of the biggest chains. Carrefour, which decided to enter Japan in 2000 – putting Russian plans on hold – withdrew from the market five years later. Wal-Mart is also struggling in Japan. Seiyu, its Japanese business, has been unprofitable since Wal-Mart first invested in 2002.

Mr Fleming’s move is part of wider management changes.

These also see Jeff Adams, the American-born chief executive of Tesco’s business in Thailand, move to Fresh & Easy in the US to become second-in-command to Tim Mason, chief executive of that venture.