Tesco has dropped out of the top three places in the global retail rankings, according to a new report by accountancy firm Deloitte Touche Tohmatsu.
The UK’s largest retailer has fallen from third to fourth place in the latest list of the world’s biggest retailers, losing its number 3 spot to German retail giant Metro.
The Deloitte report showed that US giant Wal-Mart, which owns Britain’s second biggest supermarket chain Asda, remains the world’s most number one retailer, ahead of French group Carrefour.
Sainsburys and Morrisons, the UK’s third and fourth largest supermarkets, were also included in the top 50 retailers list.
According to The Times, which revealed the Deloitte findings, the economic recession caused a drop in profits for two-thirds of companies on the list.
Ira Kalish, author of the Deloitte report, said: “This has been a tumultuous year for the global retail industry. Sales growth slowed and profitability fell, sharply for some.”
“Many retailers ‘bought’ sales with heavy promotions which hit the bottom line hard. However, we are already seeing evidence that as economic recovery takes hold around the world, retailers should be able to return to a path of improving profitability.”
Tesco is due to release its Christmas trading update tomorrow, with analysts expecting a 3 per cent rise in like-for-like sales for the six weeks to January 9.
