Tesco tipped to become world’s second largest retailer

The UK’s biggest retailer, Tesco, is being tipped to become the world’s second largest retailer after Wal-Mart, by 2012. The Institute of Grocery Distribution (IGD) is predicting that Tesco will overtake French supermarket chain Carrefour.

IGD, the UK food industry group, says Tesco’s growth will be boosted by its international expansion plans into markets such as the US, China and India.

Carrefour is still expected to perform strongly in markets such as Brazil and China, which will offset its slowdown in growth in more mature markets such as Western Europe.

The forecast has come despite a new report by TNS that Tesco’s market share in the UK has declined in the face of strong competition from its cheaper rivals.

Tesco’s market share fell to 30.9% in the 12 weeks to November 30, compared to 31.5% in the same 2007 period.

In contrast, Asda, which is owned by Wal-Mart, increased its share by 20 basis points to 16.8%, while Morrison’s share rose from 11.4% to 11.8%. Sainsbury remained steady with a 16% share.

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