Home Retail Tesco set to become world’s second largest retailer by 2012

    Tesco set to become world’s second largest retailer by 2012

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    is set to overtake in the global turnover rankings within the next five years, making it the world’s second largest retailer after . 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 per cent and 7 per cent for Tesco and Carrefour respectively between 2007 and 2012.

    Joanne Denney-Finch, chief executive, IGD, 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.”

    Report author Jonathan Gunz, senior business analyst, 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 per cent between 2008 and 2012, exceeding any other country in the top ten. Other emerging markets to watch include Indonesia, Ukraine and Vietnam.”

    —INdiaRetailing Bureau