For Immediate Release
29 June 2010
Top 20: Tesco poised for rapid growth
According to Planet Retail’s 2010 Global Retail rankings, Tesco is expected to add nearly USD50 billion in sales by 2014.
Currently the fourth largest retailer* UK-based Tesco is likely to grow group business by 50% to reach USD146 billion (GBP97 billion) by 2014. This will result in an additional USD48.7 billion (GBP32.3 billion) in sales.
Growth will be driven primarily through international expansion in markets such as India, China and the US. New market entries are likely to be minimal in the short-term due to in-fill opportunities in the aforementioned markets; however, in the long-term expansion into Russia, Ukraine and Asian markets such as Vietnam cannot be ruled out. As a result, international sales at Tesco are expected to reach USD52 billion (GBP35 billion) by 2014, accounting for more than one-third of total sales.
“Despite a lack of new store growth opportunities in its domestic market, the UK contributes to more than 70% of Tesco’s profits and will therefore remain essential in terms of funding expansion overseas,” says Natalie Berg, Planet Retail’s Research Director. “While international development is to be accelerated under new leadership, the UK is poised for continued growth through both product and format diversification.”
The number one Walmart is expected to add nearly USD160 billion (GBP106 billion) in sales over the next five years - more than Carrefour’s current size globally. Growth markets such as India and China will be key, as will Walmart’s three core markets: US, UK and Mexico.
Within the next five years, Planet Retail expects Walmart to enter both Russia and Turkey and, in the long-term, untapped English-speaking countries such as South Africa or Australia cannot be ruled out.
While international growth will be vital for other key players such as Carrefour and Metro, a renewed focus on their home markets will be equally important. Carrefour and Metro managed to retain their positions in this year’s global ranking; however they both continue to struggle with saturated home markets and a high cost structure. Over the next five years, Carrefour and Metro are likely to streamline operations – both in terms of format and geography – to focus on their core assets.
* Third largest in terms of pure grocery sales
- Ends -
For further information please contact:
Renaye Edwards, Senior Marketing Executive
Tel: +44 (0) 20 7728 4985, E-mail: renaye.edwards@planetretail.net
Natalie Berg, Research Director
Tel: +44 (0) 20 7728 4960, E-mail: natalie.berg@planetretail.net
Additional Information:
Global: Top 20 Grocery Retailers, 2010
| Rank |
Company |
Number of Outlets,
2009 |
Banner Sales,
2009 (USD bn) |
Banner Sales,
2014 (USD bn) |
| 1 |
Walmart |
8,451 |
426.06 |
582.79 |
| With exciting growth opportunities at home and abroad, Walmart continues to improve its credentials as a food retailer and is expected to enter several new markets in 2010/11. |
| 2 |
Carrefour |
14,215 |
152.34 |
193.02 |
| Carrefour’s priority is to reinvent its hypermarket format, which is struggling in its core saturated European markets. It will further expand in China and Brazil and enter India to drive future growth. |
| 3 |
Metro Group |
2,127 |
104.22 |
135.51 |
| Leading cash & carry chain Metro is benefiting from first-mover status in many emerging markets. Will enter Egypt in 2010. Large percentage of sales from non-food formats. |
| 4 |
Tesco |
4,835 |
97.54 |
146.20 |
| Growth at home through services. Internationally, its presence in the emerging markets of China, Thailand, Turkey and soon to be India will see its dependence on the UK decline. |
| 5 |
AEON |
15,743 |
92.83 |
120.61 |
| With key strategies including cementing its position as the leading retailer in Asia and fully exploiting group synergies, AEON's impact across an extremely broad array of retail sectors will continue to be significant. |
| 6 |
Seven & I |
26,371 |
86.19 |
105.63 |
| Although perhaps best known for the ubiquitous 7-Eleven c-store chain, there is much more to Seven & I's retail arsenal as it seeks to continue its progress in Japan and on a global level. |
| 7 |
Schwarz Group |
9,878 |
82.07 |
114.87 |
| German hard discount chain Lidl is now present in virtually every European market, with Kaufland hypermarkets in several countries. Saw signs of consolidation and stagnation in 2009. Entered Switzerland in 2009, with no major new market entry on the cards. |
| 8 |
Kroger |
3,619 |
80.72 |
96.96 |
| Despite a major slowdown in profit growth, America's largest traditional grocer remains well-positioned due to its food-focused and price-led strategy. Use of dunnhumby loyalty card data allows for deeper customisation and shopper understanding. |
| 9 |
Costco |
560 |
79.12 |
106.97 |
| Warehouse club operator struggled in 2009 due to its reliance on slow-moving, discretionary categories. Asia will be Costco's growth region, with Australia and Taiwan poised for expansion. Potential market entry in China? |
| 10 |
Rewe Group |
13,041 |
78.10 |
97.83 |
| Germany's second largest grocer is working on integrating several recent acquisitions in different markets. However, strengthening its position in its home market takes priority over new market entries. |
| 11 |
Auchan |
9,436 |
75.89 |
111.82 |
| Auchan has managed to offset sluggish growth in Western Europe with strong sales in Eastern Europe and Asia. A key goal for the group will be to successfully implement its 'reinvention of the hypermarket concept' in its French home market. |
| 12 |
Aldi |
9,391 |
73.42 |
98.75 |
| Leading hard discounter Aldi has accelerated expansion in promising US market. Working on rejuvenation of international management at both Aldi Nord and Süd. |
| 13 |
Casino |
10,783 |
70.31 |
90.35 |
| Casino's sales have been negatively impacted by its French hypermarket business, however the group's overall performance has been neutralised by its increasingly heavy weighting towards international operations. |
| 14 |
Target |
1,740 |
66.73 |
76.23 |
| Target continues to successfully navigate the downturn and make solid progress in successfully serving a broad spectrum of customers. It still has a lot of headroom in the US, but international expansion is now acknowledged to be on the agenda. |
| 15 |
Sears |
4,646 |
66.58 |
70.64 |
| The weakest performer by far as it continues to be buffeted by Walmart and Target, Sears is nonetheless pursuing interesting opportunities through new formats like myGofer. Still room for improvement in areas such as the core Sears and Kmart chains. |
| 16 |
Walgreens |
7,496 |
64.42 |
90.86 |
| Walgreens will continue to focus on its Customer Centric Retailing instore remerchandising programme this year, adding a grocery offering in urban markets and integrating the newly acquired Duane Reade. |
| 17 |
Edeka |
15,072 |
60.75 |
66.74 |
| Co-operative Edeka had an impressive year in 2009, thanks to its professional independents and the integration of Tengelmann's Plus discount chain, Edeka has thus further strengthened its position as the leading German grocer. |
| 18 |
Ahold |
5,234 |
60.72 |
72.30 |
| Dutch chain Ahold continues to focus on its streamlined US and European operations. Further store refurbishment in Stop & Shop and Giant US chains are on the cards whilst the company is ready for new acquisitions following Ukrop's and its market entry into Belgium. |
| 19 |
CVS |
7,108 |
56.12 |
70.76 |
| Depending on the outcome of trials currently underway, CVS may look to up its involvement in the convenience food market by adding lines such as ready meals to stores in urban locations this year. |
| 20 |
Leclerc |
1,118 |
51.45 |
65.01 |
| Leclerc has been highly successful in its French home market, which largely is accounted for by its strong price positioning reinforced by its 'permanent price cuts' that were heavily promoted over the course of the year. |
About Planet Retail:
Planet Retail is the leading provider of intelligence on the global retail industry, monitoring more than 7,000 retail banner operations as well as market developments in 211 countries. With over 15 years of industry insight, Planet Retail is a brand trusted by more than 3,000 organisations worldwide, delivering up-to-the-minute news, analysis, market research and digital media via www.planetretail.net. Planet Retail has offices in London, Frankfurt and Tokyo.
