Citation
(2002), "Global Retail Index Carrefour still top but Tesco climbs", International Journal of Retail & Distribution Management, Vol. 30 No. 3. https://doi.org/10.1108/ijrdm.2002.08930cab.005
Publisher
:Emerald Group Publishing Limited
Copyright © 2002, MCB UP Limited
Global Retail Index Carrefour still top but Tesco climbs
Global Retail Index – Carrefour still top but Tesco climbs
Exclusive research published by IGD seeks to give a more considered ranking of the world's global retailers than the usual turnover-only listings and updates the index first published last year.
The rankings have changed very little since last year, emphasising the relative lack of major merger and acquisition activity involving the key players (see Table V).
The index includes a combination of "hard" and "soft" factors (see Table VI), which in our view determine whether a retailer can be considered global or not. These have then been given a different weighting depending on their relative importance to being a global retailer.
While Wal-Mart is by far the largest retailer in turnover size, it is not yet as "global" as Carrefour or Ahold, which have a wider geographical presence and achieve a higher proportion of their turnover outside their home market. Carrefour and Ahold also have a more international corporate culture – although Wal-Mart is learning fast.
In contrast, Carrefour remains the leading retailer, reflecting the company's wide international presence and its strongly internationally focused corporate strategy. As with Carrefour, Ahold is present in a wide number of countries and the retailer is strongly focused on building its presence world-wide through acquisitions. Ahold's home market, The Netherlands, only accounts for 17 per cent of the group's total turnover.
Despite the relatively limited scope of its current overseas activities and its late international expansion, Tesco is developing into a leading international retailer. Since last year Tesco has risen two places in the GRI, the only member of the top 12 to increase their overall position. Much of this is due to its online link-up with Safeway in the USA and growth outside the UK has become a key element of Tesco's strategy of going forward.
For further information contact Jane Beard. Tel: +44 (0) 1923 851910, mobile 07770 640448 or Catherine Ellwood. Tel: +44 (0) 1923 851916; IGD, Grange Lane, Letchmore Heath, Watford, Herts WD25 8GD.