Message Font: Serif | Sans-Serif
No. of Recommendations: 15

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.
Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.