Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: Grakf One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214649  
Subject: Re: Tesco Date: 11/18/2011 12:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 15
Hello

Re British Supermarkets,

Living in the UK I shop at them all, I also work with most of them on the property side so know who is active.

Tesco is the best UK operator and has strong growth credentials in Asia. They have the leading market share.

Asda owned by Walmart is ranked second and has recently gained on Tesco with some clever discounting and marketing, they also acquired Netto and are rebranding to Asda.

The other domestic players are laggards, Sainsbury being the best of the crop, we also have Morrisons co - op Waitrose and Marks and Spencers the last two being premium quality retailers.

We also have Lidl and Aldi who have a small discount store format, they have been the fastest growers of all in the last two years, (perhaps due to the recession)

Most recently asda had positive 1.3% growth while Tesco had negative growth so they are playing the game correctly in this very tough competitive market.

I hold Walmart , so Asda indirectly. I think the Walmart international growth storey is stronger than that of Tesco. My thinking is that Walmart are more intelligent in working with JV partners and gaining a foothold at low lost cost in new countries.

Walmart have a much larger domestic platform in the US compared to that of Tesco in the UK. They can use this platform to cashflow growth in new markets and discount heavily eg with Asda to gain market share.

My family hold Tesco due to the reasonable growth and nice dividend, but for me the better growth story long term will be Walmart.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement