Tesco global growth set to outpace rivals

The world’s largest retailer, Walmart, will soon reach £310 million (€368m) in sales, according to the latest forecasts from international food and grocery analysts IGD. The figures released this week also reveal that Tesco is set to grow its global business by 7.5% a year:

“With a compound annual growth rate (CAGR) of 7.5% between 2010 and 2015, Tesco is set to be the fastest growing retailer of the global grocery top four,” reveals Joanne Denney-Finch, chief executive, IGD. “Driven by sharing best practice in areas like loyalty and services across its markets, and particularly by activity in Asia, it will grow sales to £89 million (€106m) by 2015.”

However, the world’s largest retailer in 2015 will remain Walmart, with a CAGR of 4.7% meaning global sales will pass half a trillion US dollars in 2014, says IGD.
And Carrefour’s new hypermarket format, Carrefour Planet, and strong growth in emerging markets, will support its position at number two in the global rankings

“Global retailers that want to achieve the highest growth rates are those that are building a presence in emerging markets,” adds Denney-Finch. “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.”