Today’s Sun newspaper, the UK’s leading red-top, reports Tesco chief executive Sir Terry Leahy blasting Wal-Mart, Asda’s American owner.
In what the Sun labels “an unexpected attack” Sir Terry, did not mention Wal-Mart explicitly - “but left onlookers in no doubt as to who he meant”.
And it follows a series of setbacks for Wal-Mart in which it failed to seize as big a share of the UK market as it hoped - and which has seen it quit Germany in humiliating fashion. Tesco’s rapid expansion overseas involves opening 132 stores abroad over the next six months.
Contrasting the rapid expansion of Tesco overseas with the stalling efforts of some of its global rivals, Sir Terry said: “Some 60 per cent of our selling space will be overseas by the end of the year. We have done the really risky bit, while others may be faltering in their commitment to international development.
“I think we are better at adapting (to overseas markets) than others. There are not many people who are pursuing international retailing and speeding up like we are.
“I don’t think anyone else, other than Lidl, is demonstrating the cultural ability to build business from scratch.”
Sir Terry was speaking as Tesco reported a 10 per cent rise in half-year pre-tax profits to £1.092billion. The shares rose 7.75p to 373.25.
His words ramp up the profile as as Tesco prepares to take on Wal-Mart in the US. The Sun’s City editor commented: “Sir Terry obviously feels Wal-Mart, the 20th century’s great retailing story, has run out of steam and that Tesco can be its 21st century equivalent. But he has just raised pressure on his US team immensely.”
Sir Terry also praised Jamie Oliver - the face of rival supermarket Sainsbury’s - and high-profile health campaigns have persuaded UK consumers to take grocery shopping more seriously.
He said prevailing social and economic factors could have had a negative effect on his group’s sales in the UK, but added: “I speculate what has happened is that customers are seeing food as more important.
“They are shifting expenditure. That’s what happened with mobile phones when they first came along. People seemed to find the expenditure, and people seemed to have reordered the importance of food.
“I think it’s a bit because of television chefs, a bit because of the school dinners conversation, more information about obesity, and new information about salt and heart disease.”
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