Speculation is mounting that Tesco is to take on Wal-Mart in its own back yard with plans to expand into the US.
The Grocer has learned that a senior Tesco executive, believed to be former trading director for grocery Colin Smith, has been in the US for two months.
Smith retains a secretary at Tesco’s headquarters in Cheshunt and UK suppliers are being told that he is out of the country and uncontactable.
Industry insiders believe Tesco may seek a joint venture
with US general merchandise retailer Target. Tesco retailer has had a relationship with Target for some years in areas such as management training.
Tesco is also thought to be interested in Midwest hypermarket retailer Meijer. The family-owned business, which runs more than 150 stores, is seen as a good fit and is growing at 4% per annum.
“Tesco will go in knowing it has another deal lined up. Wouldn’t it just love to play in Wal-Mart’s back yard,” said an executive from one global supplier.
Last month Tesco chief executive Sir Terry Leahy said the company would play a leading role in international retailing (The Grocer, April 16). But he warned shareholders not to expect overnight success.
While Tesco is keen to expand overseas, the easy wins are no longer there. Discounters are developing their cost-effective model rapidly in Eastern Europe, while some believe Tesco may even pull out of countries in which it does not have a joint venture, such as Taiwan and Malaysia.
The company is looking at the more mature market of Spain. Turkey has also been hotly tipped, though Carrefour’s acquisition this week of 60% of shares in Turkey’s third-largest retailer Gima and 82% of fellow Turkish retailer Endi leaves a question mark over this.
A spokeswoman for Tesco said: “We do not comment on rumour and speculation.”
The Grocer has learned that a senior Tesco executive, believed to be former trading director for grocery Colin Smith, has been in the US for two months.
Smith retains a secretary at Tesco’s headquarters in Cheshunt and UK suppliers are being told that he is out of the country and uncontactable.
Industry insiders believe Tesco may seek a joint venture
with US general merchandise retailer Target. Tesco retailer has had a relationship with Target for some years in areas such as management training.
Tesco is also thought to be interested in Midwest hypermarket retailer Meijer. The family-owned business, which runs more than 150 stores, is seen as a good fit and is growing at 4% per annum.
“Tesco will go in knowing it has another deal lined up. Wouldn’t it just love to play in Wal-Mart’s back yard,” said an executive from one global supplier.
Last month Tesco chief executive Sir Terry Leahy said the company would play a leading role in international retailing (The Grocer, April 16). But he warned shareholders not to expect overnight success.
While Tesco is keen to expand overseas, the easy wins are no longer there. Discounters are developing their cost-effective model rapidly in Eastern Europe, while some believe Tesco may even pull out of countries in which it does not have a joint venture, such as Taiwan and Malaysia.
The company is looking at the more mature market of Spain. Turkey has also been hotly tipped, though Carrefour’s acquisition this week of 60% of shares in Turkey’s third-largest retailer Gima and 82% of fellow Turkish retailer Endi leaves a question mark over this.
A spokeswoman for Tesco said: “We do not comment on rumour and speculation.”
No comments yet