Tesco is now one of the leading hypermarket operators in the world according to new IGD research. IGD has created a 'hypermarket rating' based on a number of factors such as total number of hypermarkets, number of countries of operation, clarity of hypermarket strategy and the role played by hypermarkets in the company's overall strategy.

 

Rank

Retailer

No. of hypermarkets

No. of countries with hypermarkets

Global

1

Carrefour

721

26

Hypermarket

2

Wal-Mart

1,056

8

Retailers

3

Auchan

239

14

International

4

Tesco

91

8

Hypermarket

5

Casino

239

9

Retailers

6

Leclerc

398

5

 

7

Lidl & Schwartz

292

3

 

8

Ahold

125

8

 

9

Metro

276

3

Domestic

10

Ito Yokado

182

2

Hypermarket

11

Edeka

111

2

Retailers

12

Kroger

144

1

 

13

Kmart

110

1

 

14

Target

28

1

 

15

Rewe

78

2

Note: Store and country count at year end 2000
Source: IGD Research


Company Profile:

Tesco


Tesco is a relatively recent entrant to the hypermarket sector and the development of this format can be strongly linked to its international expansion. Although principally a supermarket operator in its domestic market, the company has recognised that the hypermarket is better equipped to gain market share in emerging markets.

Although Tesco has a small number of hypermarkets in comparison to its peers, it has developed a focused hypermarket strategy and a world class format, hence its high ranking in the league. Not only is the hypermarket used to drive its international expansion, it has also been brought back to the UK to support the group's non-food ambitions, instrumental in meeting its desire for organic growth.

Hypermarkets still remain a relatively small part of Tesco's business, accounting for approximately 32.5% of its selling space and an estimated 17% of its total turnover. However, they are proving to be of key strategic importance for the retailer.

Senior Business Analyst, Anne Bordier, said, "The hypermarket has emerged as the most powerful format to achieve organic growth in fast growing emerging markets. It is now considered an essential format for leading international retailers as it is easy to export, helps spread best practice and enables diversification."

For more information on this report or the work of the Institute of Grocery Distribution please visit www.igd.com.


To view related research reports, please follow the links below:-

Grocers & Supermarkets 2001

Supermarkets & Superstores

Own Label (UK)