Tesco’s global growth to outpace rivals
Tesco is set to grow more quickly than its global rivals Wal-Mart, Metro and Carrefour in the next five years.
The UK based supermarket is expected to grow its global operations by 7.5% a year between 20011 and 2015 breaking the €100bn (£84.2bn) mark for the first time, according to international grocery analysts IGD.
Its global sales are expected to reach €106.074m (£89.3m) by 2015 compared with €73.777m (£62.1m) in 2010.
Tesco’s growth will be driven by its use of data from its Clubcard loyalty scheme and its expansion in emerging markets such as Asia.
Wal-Mart will retain its position as the biggest global retailer. Sales at US giant are expected to reach $0.5 trillion or $500,000,000 (£310,220,230) by 2014.
Carrefour, the French hypermarket group, will retain its second place position supported by its new hypermarket format, Carrefour Planet, and strong growth in emerging markets.
Metro, the Germany-based supermarket group, will rely on its international operations, which are predicted to grow faster than its domestic business.
Joanne Denney-Finch, chief executive of IGD, says: “Global retailers that want to achieve the highest growth rates are those that are building a presence in emerging markets. Rapid urbanisation and a growing middle class will create big opportunities in countries like Brazil, China, Russia and India.
“With retailer investment plans heavily focused on these emerging markets, food and drink manufacturers will need to keep pace if they want to be part of the growth. Each market is different and nobody should take their eye off the mature and domestic markets which still provide the bulk of sales for the international players.”
