Tesco store Ireland

UK-based retailer Tesco is expected to grow business by 50 per cent to reach US$146bn (€120bn) by 2014, resulting in an additional US$48.7bn (€40bn) worth of sales.

That was the verdict of a news release by market analyst Planet Retail, taken from its 2010 Global Retail rankings report, which predicted big things for the company in markets such as India, China and the US.

While new-market entries are unlikely to materialise in the short-term, expansion into areas such as Russia, Ukraine and other Asian markets such as Vietnam could not be ruled out for Tesco, the group noted.

As a result, international sales at Tesco are expected to reach US$52bn (€43bn) 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 per cent of Tesco's profits and will therefore remain essential in terms of funding expansion overseas,' said Planet Retail research director Natalie Berg. 'While International development is to be accelerated under new leadership, the UK is poised for continued growth through both product and format diversification.'

Wal-Mart, which continues to head up the retail rankings, is expected to add nearly US$160bn (€131bn) in sales over the next five years, more than Carrefour's current size globally. This will be driven by growth markets such as China and India, as well as the key markets of the UK, US and Mexico.

Within the next five year, Planet Retail added, Walmart is expected to have entered Russia and Turkey and, in the long-term, untapped English-speaking countries such as South Africa for Australia were also possibilities fo the US retailer.