Tesco Set to Become World’s Second Largest Retailer by 2012

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Tesco is set to overtake Carrefour in the global turnover rankings within the next five years, making it the world’s second largest retailer after Wal-Mart.

Turnover Projections of Leading Global Retailers

The next few years are likely to be challenging for the leading global retailers, yet all are well placed to achieve further growth, particularly internationally. Scale alone will not determine who will win in today’s global trading environment. Global retailers must also show increased simplicity, greater efficiency, flexibility and strong brand positioning to succeed.

IGD’s latest report, Global Retailing: Preparing for Change, predicts that Tesco will grow at a faster pace than French retailer Carrefour, with forecasts suggesting a compound annual growth rate (CAGR) of 11% and 7% for Tesco and Carrefour respectively between 2007 and 2012.

1. International expansion in markets such as China, US and India will contribute to Tesco’s annual turnover reaching $157.1bn by 2012

2. Carrefour is also expected to achieve strong growth in high potential markets such as Brazil and China, enabling it to offset a slowdown in more mature regions like Western Europe

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3. Wal-Mart will increase its turnover by approximately $100bn within the next five years

Joanne Denney-Finch, IGD’s Chief Executive explains: “The next few years are likely to be challenging for the leading global retailers, yet all are well placed to achieve further growth, particularly internationally. Scale alone will not determine who will win in today’s global trading environment. Global retailers must also show increased simplicity, greater efficiency, flexibility and strong brand positioning to succeed.”

Emerging markets are likely to attract even greater interest in the future as retailers enter a new phase of globalisation, characterised by a more cautious approach and a greater focus on asset performance. Low prices, a strong value message and operational efficiency will also be important for success.

Report author Jonathan Gunz, Senior Business Analyst at IGD, says: “Emerging markets will not be immune to the global economic slowdown, yet the pace of growth will continue to outstrip that of the developed world. We estimate that in grocery, retail markets in China and India will each grow at a compound annual rate of 13.2% between 2008 and 2012, exceeding any other country in the top ten. Other emerging markets to watch include Indonesia, Ukraine and Vietnam.”

Note to Editors:
IGD is an international food and grocery expert providing information, insight and best practice to the food and grocery industry. For more information, visit http://www.igd.com/globalretailing
For more information, or to arrange an interview, please contact:

Angela Anderson, Press Officer, IGD. T: +44 (0)1923 851924. M: +44 (0)7770 652991.

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