Walmart to reach sales milestone

Walmart – the world’s largest retailer – will soon reach half a trillion US dollars in sales, according to the latest forecasts from international food and grocery analysts IGD.

The figures also reveal that Tesco is set to grow its global business by 7.5% a year.

With a compound annual growth rate (CAGR) of 7.5% between 2010 and 2015, Tesco is set to become the fastest-growing retailer of the global grocery top four: Tesco, Walmart, Carrefour and Metro.

Driven by sharing best practice in areas like loyalty and services across its markets, and particularly by activity in Asia, it will grow sales to £89.5 million by 2015, compared with £62.2m in 2010.

Walmart will remain the world’s largest retailer in 2015, with a compound annual growth rate of 4.7% taking global sales to £338.9m.

Joanne Denney-Finch, chief executive of IGD, said: “Global retailers that want to achieve the highest growth rates are those that are building a presence in emerging markets. Rapid urbanisation and a growing middle class will create big opportunities in countries like Brazil, China, Russia and India.

“With retailer investment plans heavily focused on these emerging markets, food and drink manufacturers will need to keep pace if they want to be part of the growth. However, nobody should take their eye off the mature and domestic markets, which still provide the bulk of sales for the international players.”

Walmart has 8,500 stores in 15 countries, operating under 55 different names, including Asda in the UK.

Lucy Shaw, 21.02.2011