2. Current trends in retail industry in US
It is possible to understand the strength of the retail industry in US with the data that 66% of the gross domestic product of the country has originated from this industry (Lowe and Wrigley, 2010). The current retail industry is worth more than $4 trillion. Measured in terms of revenues the US market is certainly the largest in this planet. So the opportunities are plenty for a new retail chain to establish itself in this market. The competition from existing established retails giants such as Wal-Mart has to be considered seriously before considering the entry to this market.
3. Scope of Tesco in US
The success of Tesco will depend on developing a new recipe which is unique and separate it from the current retails business in US. The concept is to have supermarkets which are much smaller than the existing ones in US (Lowe and Wrigley, 2009). It will be modelled on the existing express stores currently operating in UK (Grewal et al., 2010). The stores have different innovative ideas such an eatery table where the customers can try some of the food with the assistance of the personnel staff of the store. Tesco is expecting this concept which is new to US to be successful in generating profits from the third year.
4. Future trends in retail industry in US
The future of the retail industry will be deeply connected to the development of technology. Internet purchasing is gaining significance. Nowadays it is even possible to do the shopping with a mobile phone. Retail industry has to adapt to these changes to have long term survival. In addition environmental sustainability is becoming more of a concern for the consumers. Organic products and eco-friendly goods and packaging have become the latest requirements of consumers. Retail business has to grow to accommodate these needs for them to attain as well as to sustain the essential competitive advantage in the industry.
References
Grewal, D., Krishnan, R., Levy, M. and Munger, J. (2010) 'Retail Success and Key Drivers', Retaiing in the21st Century, vol. 10, pp. 15-30.
Lowe, M. and Wrigley, N. (2009) 'Innovation in retail internationalisation: Tesco in the USA', The International Review of Retail, Distribution and Consumer Research, vol. 19, pp. 331-347.
Lowe, M. and Wrigley, N. (2010) 'The 'Continuously Morphing' retail TNC during market entry: interpreting Tesco's expansion into the USA', Economic Geography, vol. 86.
