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Wal-Mart fears Tesco's potential

The Financial Times (subscription required) reports that Wal-Mart (NYSE: WMT) is considering acquisitions in the U.S. as it attempts to broaden its reliance on its 2,300 colossal "Supercenters" for future growth, citing a job posting that requests an executive to assess the "strategic implications of any possible M&A on our overall portfolio."

This is Wal-Mart's first attempt in more than 25 years to acquire a company in its own backyard. The move is seen as a response to the upcoming opening of Tesco's (OTC: TSCDY) "Fresh & Easy" grocery markets in the United States. Tesco's smaller neighborhood grocery markets cover 10,000 square feet of selling space, compared to Wal-Mart's Supercenters, which dominate the landscape with 187,000 square feet. Wal-Mart also has discount stores without groceries that average 107,000 square feet.

Continue reading Wal-Mart fears Tesco's potential

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Last updated: November 27, 2009: 02:29 PM

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