Today the high street, tomorrow the world as Tesco reveals big profits
Tesco is set to reveal yet another year of record turnover and profits, capping a decade that has seen it nearly treble in size.
But rather than look back on ten years of almost unprecedented success, it will look forward and overseas pointing to its prospects for international growth.
The supermarket group is expected to reveal turnover up 7 per cent at 58 billion, with profits up 9 per cent at 3.1 billion, when it announces its annual results tomorrow.
Analysts expect like-for-like sales in Britain to be 3.3 per cent higher.
Two thirds of Tesco s floorspace is overseas, but it still contributes only 20 per cent of profits, which Tesco argues only underlines its potential for growth.
Apart from Fresh & Easy, its American business, Tesco s overseas operations are in emerging markets, such as China, Thailand and Central Europe.
The rate of sales growth among Britain s big grocers has fallen rapidly this year, because lower food inflation has meant that supermarkets are putting their prices up less sharply.
Indeed, Tesco started the year as the most sluggish of the Big Four, trailing Wm Morrison, Asda and J Sainsbury. But since doubling the discounts available via its Clubcard loyalty scheme, it has rejoined the pack.
Its non-food offering will be under particular scrutiny by analysts and investors, with both looking for signs of a riposte to Asda, the group s biggest competitor, which last week announced plans for 125 non-food stores.
Tesco has outlined plans for an own-label young fashion range Florence & Fred Trend.
The market will also be eager for news on whether the Fresh & Easy convenience stores in California, Nevada and Arizona are over the worst of the recession.
Last year Sir Terry Leahy, Tesco s chief executive, said that he did not expect Fresh & Easy to be in profit until the West Coast economy had improved.
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