Wal-Mart CEO Lee Scott last week called for the British government to launch an investigation into Tesco’s growing dominance of the British supermarket industry. Scott told the Sunday Times of London that Tesco’s 30.5 percent market share was the event that prompted his move.
"As you get over 30 percent and higher I am sure there is a point where government is compelled to intervene, particularly in the (United Kingdom), where you have the planning laws that make it difficult to compete," Scott told the Times.
Wal-Mart, which owns the UK’s number two food retailer, Asda, is hardly alone in criticizing Tesco. Numerous other retailers that have been suffering market share declines in the face of Tesco’s growth also have called for government intervention.
"As you get over 30 percent and higher I am sure there is a point where government is compelled to intervene, particularly in the (United Kingdom), where you have the planning laws that make it difficult to compete," Scott told the Times.
Wal-Mart, which owns the UK’s number two food retailer, Asda, is hardly alone in criticizing Tesco. Numerous other retailers that have been suffering market share declines in the face of Tesco’s growth also have called for government intervention.
- KC's View:
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Tell you what. If Wal-Mart is willing to sign a declaration that it will never, ever exceed a 30 percent market share in any of the markets it serves, we will be willing to take this call for government intervention seriously.
We would also offer to Wal-Mart the same kind of unsolicited advice that we give to so many of its competitors here in the US:
Tesco isn’t the enemy. You are. If you want to compete effectively with Tesco, you simply have to be better and more aggressive.
Though the idea of a more aggressive Wal-Mart is certainly a notion that is enough to make your hair stand on end.
