Tesco could have a Wal-Mart

A third of revenue grocery retailer in the world, British Tesco (planned for 2007 turnover of more than $ 103 billion) for the first time declared that could open their shops in Russia.

On the Russian market already Promises two leaders of world retailers: French Carrefour opens first hypermarket in Moscow in 2008, a U.S. Wal-Mart can buy the local network.

Yesterday, CEO of British retailer Tesco, Terry Leahy said in an interview with The Times of intent to expand Tesco on the international market. According to him, as a new market for Tesco sees India and "does not preclude the entry into the Russian market." At the headquarters of Tesco yesterday could not provide more details on the timing and exit strategy in Russia.

According to Mr Leahy, quoted The Times, in the next ten years, Tesco plans to double the share of revenue from overseas operations, which now stands at 27%. Sales abroad this year should exceed $ 26.8 billion with annual revenues $ 103.3 billion, Tesco now operates in 13 countries, including Thailand and China.

Tesco - the largest retail network in the UK and third largest in the world (after the American Wal-Mart and French Carrefour). Founded in 1919. It brings together more than 3 thousand shops in 13 countries around the world.
Two of the world's largest retailer - Carrefour and Wal-Mart has already announced intention to enter in Russia market. Opening the first Carrefour is expected as early as 2008: hypermarket area of about 12 thousand square kilometers to open in Moscow Shopping Mall Fili (see 'dated 14 May 2007). Wal-Mart has not yet disclosed the timing of Russian project. In February this year, two vice-presidents from Wal-Mart, Mike Bratcher and Juan Figeyro at a conference in Russia said that the network expansion will begin only in partnership with a local player. In February, top manager X5 Retail Group told that the company is discussing the possibility of cooperating with Wal-Mart, Carrefour and Tesco, and did not rule out that one of the three retailer will acquire additional issue X5 (minority package).

Leaders of retail World are attracted by frenzied growth of the Russian retail market and its weak consolidation, analysts believe. Every year the local food retail will grow at least 16% until 2010, said the report "Russian retail chains, to buy time," MDM Bank. In the X5 projected market growth at 14% per an in the years 2007-2011. It is estimated X5, the entire retail grocery market in Russia, including the underground is estimated at $ 233 billion in 2006, of which only 15% are modern formats.

The proportion of the five largest networks in general circulation product market consists - only 5%. For comparison, in Britain's five leading players took 57.5% of the market, in Germany - 69.6%, Sweden - 87,4%. According to analyst Renaissance Capital Zagvozdinoy Natali, a foreign retailer still no need to buy local network: "As long as the share of Russia's largest player reaches 5% of the market can be developed, not using the tools of M & A". It is projected that the proportion of X5 will grow up to 5% no earlier than 2010.