Interesting story here and here (Registration may be required) that moots Tesco as a possible bidder for Albertson’s in the USA. Albertsons are the number 2 food retailer in the USA who are having a hard time against Walmart.
This is interesting especially after all the recent UK PR about Asda (Walmart) bleating about Tesco’s dominance in the UK.
Tesco’s market capitalization is about £25.6b Albertson apparently could fetch £11b. Walmart still dwarfs them with a market cap. of over £100b.
Personally I think its sheer lunancy if Tesco do this. Has any UK company succeeded in the USA? However, it could be good news for Sainsbury etc in the UK since Tesco’s senior management would be well stretched to handle a Albertsons take over.
Maybe worth a punt to buy some Albertsons shares – they are at quite a low currently.
Tesco will never suceed in the USA. It treats its workforce in the United Kingdom with contempt and this attitude has caused the company major problems in Asia. The strong US trade unions will not tolerate tesco’s bully boy antics.
It would be really cool is Tesco came to the States. It is hard for new stores to enter markets though due to the dominancy with Walmart. There has been a UK company that has been successful in the US: Burger King.. They have been around for quite a while and pretty successful, despite McDonald’s dominancy in that market
The trade unions are powerless in the USA. Tesco will fail to secure quality employees if they do indeed treat employees with contempt. It wouldn’t make sense if they plan on any success at all.
I have worked for Tesco and it doesn’t treat its workers with contempt.
I think they’ll do really well – Walmart is tacky and the US doesn’t have anything half as good as tesco!