Tesco ‘set for top UK retailing position’
Gavin Haycock
Reuters
LONDON — Britain’s biggest food seller, Tesco, will become the country’s largest nonfood retailer by the end of the year as it expands its offering via bigger stores and the internet, according to a research report.
Retailing research group Verdict said yesterday that Tesco’s share of the nonfood market this year was forecast to rise to 3,6% from last year’s 3,2%.
This would push it ahead of Argos Retail Group, owner of Argos & Homebase, which Verdict forecasts to have a 3,5% market share this year versus last year’s market-leading 3,3%.
Verdict said Tesco, valued at about £27,5bn, and market heavyweights such as J Sainsbury and Asda, the British arm of world number one Wal-Mart, enjoyed gains at the expense of rivals as they pushed into almost all retailing areas.
The report comes as the UK’s Competition Commission investigates its £95bn grocery market.
The probe, which may take two years, is examining issues such as supplier relationships, structure of local markets and the effects of the planning regime, including retailers’ big land holdings.
“Tesco continues to add substantial new nonfood space through mezzanines, store extensions and new store builds,” said Verdict’s senior retail analyst, Alastair Lockhart, who wrote the report.
“It is skilfully enhancing its ranges across all categories and leading the way in internet and in-store catalogues to create new opportunities.”
Tesco’s gains in web-based retailing were underscored by 2005 annual results showing more than 200000 online orders a week, surging 32% to almost £1bn, with profit up 55% to £56,2m.
Many retailers say web retailing and supermarket giants are making business tougher.
Publisher: Business Day
Source: Business Day
