Tesco To Become Worlds Second Largest Retailer By 2012

Wed, 10 Dec 2008
 
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Tesco is on track to overtake French retailer Carrefour as the world’s second largest retailer within the next five years, new data suggests.

The latest report from food and grocery research firm IGD, titled ‘Global Retailing: Preparing for Change’, predicts that Tesco will surpass Carrefour in global turnover rankings, with forecasts suggesting annual growth rate of 11 per cent for Tesco between 2007 and 2012, compared to 7 per cent for Carrefour .

Tesco’s annual turnover is expected to reach $157.1bn (£106.7bn) by 2012, aided by international expansion in markets such as China, the US and India .

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

However, both companies will remain a distant second and third to US giant Wal-Mart, which is expected to see annual turnover rise over $100bn to a staggering $476.2bn by 2012, the report adds.

IGD predicts its turnover will grow 27 per cent by 2012 to $476.2bn annually. The company is currently bucking the global trend and continues to post the highest earnings among US retailers .

Commenting on the figures, IGD chief executive Joanne Denney-Finch, said: "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."

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