Tesco chief executive Sir Terry Leahy talked up the retailer's international potential yesterday as he declared that the group was "better at adapting" to new countries than its rivals. The comments came as the world's fifth-biggest retailer said half-year profits passed the £1 billion (€1.5 billion) mark.
"When others appear to be faltering in their commitment to overseas development, Tesco is getting stronger," Sir Terry said, in an apparent swipe at larger rivals such as Wal-Mart, which has recently pulled out of Germany and South Korea, and Carrefour, which is also trimming back its overseas portfolio.
Sir Terry said India was "top of his list" of potential new markets. It is also investing £250 million a year on a chain of convenience stores on the US west coast.
Overseas markets will account for 60 per cent of group space by the end of the financial year. However, income is driven from the UK, which delivers more than three-quarters of profit. Sir Terry said all countries, except Japan and Hungary, had shown strong underlying growth over the period.
Profits rose 19.7 per cent in the period on the back of a 20.9 per cent sales increase to £22.7 billion.
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