Wednesday 13 August, 2008

Watch Out .... Tesco Is Coming To Town

After 3 years of boadroom battles, they have finally found the passage to India through TATA's Trent.Yes, Tesco UK's largest retailer, is coming to town. Emulating Wal Mart's strategy Tesco is targeting the B2B market by setting up cash and carry outlets in major cities like Mumbai,Bangalore& Delhi.
Apart from this ,Tesco will also provide retail expertise to Trent to revamp its Star Bazaar outlets which is lagging behind its competitors. This will surely boost up Trent's position in the Indian retail scenario.
Walmart is planning for 15 outlets by 2015 while Tesco has plans for only 3 stores right now but both starting in 2009 .However Both the giants might not have a head on competition as their first stores will be opening n different locations.While Tesco will start at Mumbai,Wal Mart will start in Punjab.
The cash & carry stores from Tesco will be operated under its own name, while Bharti Wal Mart have yet to unveil its branding strategy.But it is speculated that stores might not have Wal Mart's logo due to the political heat it receieved after the initial announcements.
In spite of all these, Metro,the German wholesaler appears quite confident as it has the first mover advantage and also it has previously given a tough time to Wal Mart when Wal Mart had set up stores in Germany.

We have to wait and see how the local players like Future,Reliance etc will take on the global giants.Anyway the organised retail sector in India will improve from its current 5% and we can assume that it will do good to the consumer.

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