The company said the Indian venture, a franchise arrangement with the country’s Shopper’s Stop and HyperCITY retail groups, had failed to meet targets.

Other retailers have failed to realise the predicted potential of overseas expansion. They include Marks & Spencer, which unsuccessfully opened its first stores in mainland China last year.

Even Tesco, one of the few UK retailers to have enjoyed some international success, has slowed down expansion of its Fresh & Easy chain in the US in light of the country’s recession.