Tesco to grow 50% by 2014, report predicts

The growth would mean an additional $48.7bn (£32.3bn) in sales.

The research predicts that international expansion will power rapid growth at Tesco, the world’s fourth largest retailer, with new stores in established markets such as India, China and the US, and new markets such as Russia, Ukraine and Asia, including Vietnam. Planet Retail forecasts over that time, the international business will grow to account for a third of total sales.

Planet Retail’s research director Natalie Berg said: “Despite a lack of new store growth opportunities in its domestic market, the UK contributes to more than 70% of Tesco’s profits and will therefore remain essential in terms of funding expansion overseas.

“While international development is to be accelerated under new leadership, the UK is poised for continued growth.”

Walmart, the ranking’s top retailer, is expected to add nearly $160bn (£106bn) in sales over the next five years, more than the current size of French retailer Carrefour. Its key growth markets will be India and China but also its core countries – the US, UK and Mexico.

The report predicts that Walmart will launch into both Russia and Turkey over the next five years and, over the long-term, is expected to enter untapped English-speaking countries such as South Africa and Australia.

International growth will also be key to the growth of  Carrefour and German retailer Metro, according to the report, although a renewed focus on their home markets will also be vital to their future success. While both have retained their top 20 positions in the global rankings, they are struggling in their saturated home markets. Over the next five years, both are expected to streamline in terms of format and geography to focus on their core assets.