Internationalisation of Food Retailing

Transcription

1 Internationalisation of Food Retailing An essential guide to the state of international expansion in food retailing CIES The World Retail Network / e-intelligence on global retailing /

2 Contents Executive summary 3 Recent market entries/exits 5 A to Z listing of international food retailers 7 Methodology & acknowledgments 81

3 Executive summary December 007 This year s highlights The 007 survey comprises 100 international food retailers, up from 98 a year ago. The number reflects the beginnings of foreign investment among some smaller players and the effects of consolidation. Chile s Falabella, for example, joins the survey this year with its four Tottus outlets in Peru. Russia s Pyaterochka and Perekriostok, meanwhile, merged during 006. Their can now be found under the single entry for X5 Retail. The average number of countries, however, once again remains unchanged at 6, with no major shift in the geographic spread of international retailing. Germany s Metro Group has finally beaten rival Carrefour to the top spot as most international operator, with 31 countries versus 30. The world s largest retailer, Wal-Mart, has entered arguably the world s most promising, yet problematic market: India. The US giant has signed an agreement with local firm Bharti. Despite strict regulations that force Wal-Mart to take a back-seat in the operation of the, the entry will give Wal-Mart a head-start in its revised strategy to prioritise markets and focus only those in which it can take first or second place. Carrefour has announced a cash & carry concept, due to launch in 009. The other big news this year is Tesco s Fresh & Easy neighbourhood market, finally launched in the United States, with an aggressive plan to open 100 across the country by 008. While China is still a popular retail destination, saturation of tierone cities has led to consolidation and expansion further inland. The convenience channel has been particularly active in urban centres. The challenge international retailers now face, having focused on expansion and market share, is the profitability of their Chinese investment. India is still firmly in the spotlight. However, organized retail and foreign direct investment (FDI) is a controversial subject in the sub-continent. Local merchants and activists have staged violent protests. Local organized retailers such as Reliance and Pantaloon have taken advantage of sluggish progress in FDI regulation to expand rapidly ahead of foreign entrants, but not without meeting resistance themselves. Politicians within the regions have been quick to push through populist legislation either to restrict, ban or close down organized retail activities, affecting domestic retailers such as Reliance. The atmosphere therefore is highly-charged. Average share of foreign sales among the top five international players increased again this year, from 46.6% last year to 47.6%, despite no increase in the number of operating countries, which remains 0 on average. Internationalisation of Food Retailing 007 3

4 Analysis of key trends MACRO VIEW World GDP rose by 4% in 006, a bullish yearon-year result at odds with the sharp spike in fuel prices. The global performance reflects strong contributions from developing countries, the most dynamic of which remain China and India. Despite their contributions, higher global interest rates are causing growth to slow in developing markets. This is seen as healthy, as more relaxed growth may prevent the oriental boom turning into a bust. Although Europe is recovering from its doldrums of the last few years, the global focus is shifting from west to east, evening to some degree the imbalance between mature and developing economies. But despite the slow-down, the prospects for emerging markets remain robust. While the food business, too, has emerged from lean times with an appetite for expansion, there are still considerable challenges ahead: the increased co-opting of arable land for the production of green biofuels such as ethanol has reduced the supply of basics such as wheat, maize and rice. Food prices, therefore, have already begun to rise and the World Bank projects that poor harvest could push the price of these staples up by as much as 100%. This puts severe pressure on food retail multiples to keep their existing markets operating profitably. This may impact future expansion policies. Regulatory issues also prevent food retailers from fully penetrating many international markets. Indeed, the regulatory climate in a number of emerging markets India, Poland, Thailand, for example is volatile and currently hostile to foreign investment. Add in the spectre of economic slowdown in the US, following severe weakness in the housing sector, and the future is far from certain. FOCUS ON SHARE The largest players have been revising their international strategies in the last couple of years and carefully prioritising markets. Intense competition and high levels of consolidation, coupled with softer economic conditions, mean growth has been slow in mature markets. In consequence, a wide spread is no longer so important to retailers as a top-three position in profitable markets. This rethink has given rise to a number of exits from mature or highly competitive markets. Last year, Wal-Mart s exit from Germany and Korea was a case in point: prospects were better in China and India. A number of international retailers also left the Czech Republic, allowing dominant Ahold a freer reign. Along similar lines, this year sees a number of exits from mature markets (see table below), coupled with moves into new territories, where retailers can exploit a firstmover advantage. Carrefour, for example, is pulling out of Switzerland, but has entered Jordan. 10-year recap for top 5 international retailers Retailer Number of countries with (at year-end) Wal-Mart Carrefour Tesco Metro 31 6 Ahold Source: CIES The Food Business Forum, Internationalisation of Food Retailing In terms of numbers, our survey shows that the strategy has been successful in broad terms. Among the top five (Wal-Mart, Carrefour, Metro, Tesco, Ahold), share of foreign sales again increased, from 46.6% last year to 47.6% this year, while the number of countries decreased. By individual retailer, Internationalisation of Food Retailing 007 4

5 the results were more varied. Wal-mart s share remained flat at 3%, reflecting no new market entry in the period surveyed. Metro added one country and increased share by points to 53%. Tesco was more impressive, losing one territory to increase share by points to 5%. Ahold also looked bullish, exiting one country but standing its ground at 8%. Carrefour held firm at 53% despite editing its geographic spread. While the bigger players are tending to narrow their international spread, some smaller companies, particularly those based in Asia, Africa and the Middle East, are making their first steps into neighbouring countries, reflected by some new entrants in this year s survey. There is also increased cross-border activity within Latin America, as the sector begins to consolidate. Looking forward to next year, those international players who have established firm footprints in emerging markets will now need to focus on profitability, if they are to compete with increasingly bullish local rivals, especially in Asia. Other international trends in brief The much-trumpeted arrival of US banner Whole Foods Market in the UK market, along with some interceding economic factors such as food price inflation, is having an interesting effect on market positioning. A number of retailers notably Waitrose and Marks & Spencer, but also Tesco in some categories are now seeking to move further upmarket, addressing in varying degrees affluent consumers who value ethics, transparency and quality over low prices. Elsewhere, the same trend is a response to the rise of a new middle class, such as in Thailand where retailers such as CenCar and Central Retail are moving upmarket to capture the growing crowd of young professionals. The same strategy, however, did not work for Wal-Mart in the US last year, which risked muddying its central price message. Because of this, if the current rate of food price inflation continues, it will be interesting to see the effect on retailers discount operations across the globe. Next year s survey could well see the beginnings of a shakedown at the cut-price end of the market. Meanwhile, something of a global shift in focus to small-format reflects a number of factors. As countries urbanise, consumers have less time and seek convenient food solutions that they can buy on the way home. But regulations also play a part, with barriers to greenfield, or big-box openings apparent in a number of territories. It is notable that Tesco chose a smaller format for its crucial US entry and is successfully exporting both its Tesco Express convenience format and its upscale Finest range of private label goods. Look here for future overseas growth. Richard LEWIS Sector Analyst Summary of recent market entries/exits RETAILER COUNTRY MOVE AHOLD Poland Exit 007 ALDI Hungary Entry 008 AUCHAN Romania Entry 006 Morocco Exit 007 CARREFOUR Bahrain Entry 008 India Entry 009 Jordan Entry end-006 Switzerland Exit 007 CASINO USA Exit 007 COLRUYT Netherlands Entry 008 DELHAIZE Czech Republic Exit 007 EDEKA Austria Exit pending EMKE India Entry planned 007 MARKS & SPENCER Taiwan Entry 007 via JV USA Exit 007 METRO Pakistan Entry 007 MIGROS TÜRK Bulgaria Exit 007 Russia Exit 007 TENGELMANN Bulgaria Entry 008 TESCO USA Entry 007 WAL-MART India Entry 008 Full details can be found in the Updates column of the main listings. Internationalisation of Food Retailing 007 5

6 Regional round-up India The subcontinent is still seen as the big prize, offering as it does the potential to become the world s largest single consumer market. However, entering the territory is fraught with regulatory complications. India s government is under intense pressure from opposition parties and public opinion over foreign direct investment (FDI) in the retail sector. Currently, multi-brand retail FDI is banned, while the state of Kerala has also banned all organised retail, foreign or domestic. To comply with the regulations, Wal- Mart s joint venture with Bharti will see the Indian company handling operations using the Wal- Mart name under licence, while the US retailer will provide logistics and back-office support. Carrefour has opted for a wholesale operation, slated for launch in 009, despite CEO José Luis Duran s remark that there is limited visibility for retailers in India. Indeed, the country s homegrown organized retailers, notably Reliance, which has expanded rapidly during its first year of trading, have met with violent resistance from independent retailers and traders, who fear their business will be damaged by supermarkets. The demonstrations have led to some populist legislation by local governments, clamping down on the spread of organised retail, creating an uncertain climate for those looking to invest. China While the Chinese central government has a more liberal attitude to FDI, obstacles cited by retailers include arbitrary enforcement of regulations by local governments, along with corruption. As the main coastal cities begin to saturate, retailers are heading inland. But the country s undeveloped infrastructure poses supply chain challenges that require considerable investment by organized retailers. In addition, regions vary considerably in taste and custom, requiring an agile approach to assortment and supply. CEE There is no let-up in the momentum in Romania, with the internationals Metro, Carrefour, Delhaize, Spar and Kaufland to take examples from recent news items expanding and reinforcing their footprints at a rapid rate. Faced with this activity from the foreign multiples, six local supermarket chains have founded RomRetail The Association of Independent Traders. The alliance will work on shared buying and logistics and develop private label, with an aim to place the combined entity within the top ten. Poland continues to be a busy market, though new regulations to protect independent retailers threaten to slow the rate of expansion among the foreign multiples. Russia, too, remains a choice destination with a number of key entries, although the country s foreign policy and attitude to inward investment has become less certain in recent months due to political tensions. Americas The big story for the US is the arrival of Tesco, with its convenience-led format Fresh & Easy. The increasingly international UK player acknowledges having taken a big risk in entering the mature market, dominated by the big boxes, in which many have been downsizing A&P, Winn-Dixie, for example, and Ahold, which has recently disposed of its Tops operation. Casino exited the US with the sale of its 55% stake in Smart & Final to a private equity investor. However, a strategy of targeting underretailed urban areas may serve Tesco well when it begins operating. The recent downturn in the US property sector is creating a softer economic outlook for the US. The resultant depression in consumer spending will create an additional challenge for retailers. Latin America has been looking more dynamic, with consolidation and expansion among the big players Chile s Falabella is merging with Distribucion y Servicio (D&S) and is pushing into Columbia. Carrefour recently reinforced its position in Brazil with the acquisition of local cash and carry operator Atacadao. However, there are worries in the region too, with Mexico currently looking soft after the US downturn. Africa & Middle-East As Carrefour enters Kuwait, with Dubai-based Majid Al Futtaim, the middle-eastern retailers are looking quietly confident. Abu Dhabi group Emke is setting its sights on India, Egypt, Libya and Kenya. A number of new entrants from the region have also shown themselves in this year s survey: UAE group Al Safeer joins the list with a move into Oman. Likewise, its compatriot Spinneys. Spinneys Lebanon-based operation joins too, with a move into Egypt. Meanwhile in Turkey, market leader Migros Türk disposed of its Bulgarian operation Ramstore, perhaps as a prelude to being sold off itself by parent company Koç. The latter s move to dispose of Migros Türk in turn creates a compelling opportunity for a strong foreign player. Internationalisation of Food Retailing 007 6

7 A to Z listing of international food retailers Company name & Food 006 Non-food 006 Comments & 007/008 updates ÆON Net Sales (Euro mn) 9, of countries 10 Canada 8 Talbots Clothing China 1 Jusco Hypermarkets Hong Kong 7 Jusco super Jusco Supermarket Super 11 $10 Plaza Variety Japan 19 ÆON Supercenter Hypermarkets 7 ÆON Cinema Cinemas AEON acquired Daiei and Maruetsu in Agas Supermarkets 1 ÆON Tower Yakkyoku Pharmacies 49 Belc Supermarkets 63 ASBee Shoe 54 Cantevole Bakeries 560 Blue Grass Clothing ÆON Mall and Aeon s shopping centre subsidiary Diamond City merged in August Carrefour Hypermarkets Bon Belta Department ÆON operates the Carrefour banner under licence. 11 Food Center Supermarkets 194 Claire s Jewellery ÆON has a JV with US-based Claire s Stores Inc. 111 Food Market Kasumi Supermarkets 197 Cox Clothing 5 Food Off Stocker Supermarkets 30 Fantasy Island Other turnover 11 Food Square Super 5 Forus Clothing 509 Gourmet D Or Restaurants 51 Home Wide DIY 1 Grand Plechéf Supermarkets 1 IFQ Clothing 4 Hallo Supermarkets 6 Jusvel Travel agencies 3 Joy Supermarkets 1 Karada Labo Drug 5 Joyful Tokai Supermarkets 1 Kid s Kyowakoku Clothing 99 Jusco Hypermarkets 81 Laura Ashley Clothing ÆON operates the Laura Ashley banner under licence. 1 Jusco Supercenter Hypermarkets 8 Megamart Variety Internationalisation of Food Retailing 007 7

8 ÆON cont. Food 006 Non-food MaxValu Supermarkets 143 MIRAIYA SHOTEN Book 37 MaxValu Kurashikan Supermarkets 70 NUSTEP Shoe 1 MaxValu Supercenter Hypermarkets 59 Petcity Pet shops 184 Ministop 48 Petras Petrol stations 5 Mrs. Smart Supermarkets 539 Reform Studio Specialist non-food 6 My Basket 57 Sakura Pharmacies 70 Origin Toshu Fast food outlets 8 Scrum Music/video 19 Posful Hypermarkets 45 Sunday DIY 10 SATY Hypermarkets 04 TAKA:Q Clothing 1 Super Center Home Wide Hypermarkets 47 Talbots Clothing 13 The Big super 135 The Body Shop Specialist non-food 17 Wellmart Supermarkets 70 The Sports Authority Sport/leisure Yaohan Supermarkets 17 VIVRE Department Korea, South 969 Ministop Malaysia D hati Supermarkets Supermarkets 16 Jusco Hypermarkets 45 Welcia Drug 65 Welcia Drug 874 Welcia Drug 176 Yamaya Liquor 50 Zwei Specialist non-food The Body Shop are operated under franchise. Taiwan 1 Jusco Hypermarkets Exit planned for 18 december 007. Thailand 6 Jusco Super Internationalisation of Food Retailing 007 8

9 Food 006 Non-food 006 ÆON cont. United Kingdom 3 Talbots Clothing USA 39 J Jill Clothing Total Talbots Clothing Afra Net Sales (Euro mn) 155e 4 74 of countries Sudan 1 Afra Hypermarkets Turkey 15 Afra 8 Afra Express super Total 44 Ahold Net Sales (Euro mn) 44, of countries 10 Czech Republic 48 Albert Supermarkets 56 Hypernova Hypermarkets Estonia 6 Rimi Supermarkets 8 Rimi Hypermarket Hypermarkets 50 Säästumarket Discount 1 SuperNetto Cash & carries Latvia 13 Maxi Rimi Hypermarkets 30 Rimi Supermarkets 45 Supernetto Discount Lithuania 9 Hyper Rimi Hypermarkets Rimi Supermarkets 0 Supernetto Discount Hypernova will be rebadged to Albert in the second half of 007 Netherlands 70 AH to go 0 AH XL Super 440 Etos Drug Internationalisation of Food Retailing 007 9

10 Food 006 Non-food 006 Ahold cont. 735 Albert Heijn Supermarkets 458 C1000 Supermarkets C1000 is operated by subsidiary Schuitema. 50 Gall & Gall Liquor Norway 50 ICA Express Forecourt 3 ICA MAXI 306 ICA Nær super 76 ICA Supermarked Supermarkets 44 Livi Supermarkets 88 Rimi Discount 195 ServiceMat Poland 179 Albert Supermarkets Ahold completed the sale of its retail operations in Poland to Carrefour in July Albert Express Forecourt 15 Hypernova super Slovakia 15 Albert Supermarkets Hypernova super Sweden 145 ICA Express Forecourt 1 ICA Kvantum Supermarkets 746 ICA nära 477 ICA Supermarket Supermarkets 5 MAXI ICA Stormarknad USA 14 Giant (Carlisle) Hypermarkets super The retailer announced its intent to exit Slovakia during 007, then changed its mind. Ahold ICA sold the majority of its stake in Netto to Dansk Supermarked, which now operates the. Internationalisation of Food Retailing

11 Ahold cont. Food 006 Non-food Giant G (Landover) 380 Stop & Shop super super Total Al Safeer Net Sales (Euro mn) Al Safeer Hypermarkets Oman 351e Hypermarkets 30 8 Safeer Mart Supermarkets Al Safeer Hypermarkets United Arab Emirates Hypermarkets of countries 3 Safeer Market Supermarkets Total 35 Aldi Net Sales (Euro mn) 39,810e of countries 14 Australia 138 Aldi Discount Austria 395 Hofer Discount Belgium 418 Aldi Discount Denmark 45 Aldi Discount France 70 Aldi Discount Germany 499 Aldi Markt Discount Aldi Süd Discount Ireland 38 Aldi Discount Luxembourg 1 Aldi Discount Netherlands 417 Aldi Discount Portugal 5 Aldi Supermercados Discount Slovenia 7 Hofer Discount Spain 153 Aldi Discount Discount (non-food) Aldi will enter Hungary during 008. The retailer believes the market will support up to 400. Internationalisation of Food Retailing

12 Food 006 Non-food 006 Aldi cont. Switzerland 7 Aldi Suisse Discount United Kingdom 30 Aldi Discount USA 834 Aldi Discount 71 Trader Joe s Supermarkets Total Auchan 34, of countries 13 Angola 1 Jumbo Hypermarkets China 68 RT Mart Hypermarkets 16 Auchan Hypermarkets France 7 Au Marché Vrac Discount 5 Eurobounta Discount (non-food) 388 Atac Supermarkets Little Extra Variety 1 Auchan Hypermarkets Chronodrive Supermarkets 3 Easy Marché Supermarkets 1 Fredi Discount 3 4 Galeries Gourmandes Les Halles d Auchan Supermarkets Super 14 Simply Market Supermarkets Hungary 10 Auchan Hypermarkets Italy 43 Auchan Hypermarkets 6 Simply Market Supermarkets 1410 Sma Supermarkets Luxembourg 1 Auchan Hypermarkets Morocco Acima Supermarkets Auchan exited Morocco in August with the sale of its 49% stake in its JV to Moroccan Partner ONA. There had been disagreements about operational control of the business. Internationalisation of Food Retailing 007 1

13 Food 006 Non-food 006 Auchan cont. 13 Marjane Hypermarkets Poland A-tak Discount 0 Auchan Hypermarkets 1 Elea Supermarkets 10 Box Electronics Portugal 17 Jumbo Hypermarkets Pão de Açúcar Supermarkets Romania 1 Auchan Hypermarkets Russia 5 Atak Discount Market entry in November 006. Auchan now has outlets in Romania. Spain 7 d 14 Auchan Hypermarkets 47 Alcampo Hypermarkets 115 Aro Rojo 110 Sabeco Supermarkets 11 Simply Market Supermarkets Taiwan 19 RT Mart Hypermarkets Total Baugur of countries 3 Iceland 1 «10-11» 5 Bónus Discount 13 Apótekið Pharmacies 9 Hagkaup super 6 Útilíf Sport/leisure Debenhams Department Figures do not include Baugur s small number of clothing under licence in each of the following countries: Bahrain, Belgium, China, Cyprus, Denmark, France, Germany, Greece, Kuwait Lebanon, Monaco, Netherlands, Norway, Qatar, Russia, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates, USA Internationalisation of Food Retailing

14 Food 006 Non-food 006 Baugur cont. 3 Dótabúðin Toy 1 Karen Millen Clothing Ireland 4 Julian Graves Specialist food Miss Selfridge Clothing 3 Oasis Clothing Top Shop Clothing 1 Zara Clothing 1 Jane Norman Clothing 3 Karen Millen Clothing 5 Oasis Clothing 10 Principles Clothing 33 The Shoe Studio Group Shoe 11 Warehouse Clothing United Kingdom 174 Booker Cash & carries 71 Bertie Shoe 700 Iceland 315 Julian Graves 1950 Premier 130 Whittard of Chelsea Supermarkets & Specialist food Specialist food 70 Chelsea Cobbler Shoe 0 Goldsmiths Jewellery 16 Hamleys Toy super 61 House of Fraser Department 130 Jane Norman Clothing 75 Karen Millen Clothing 174 MK One Clothing 160 Nine West Shoe 365 Oasis Clothing 8 Pied A Terre Shoe 80 Principles Clothing Internationalisation of Food Retailing

15 Food 006 Non-food 006 Baugur cont. 130 Roberto Vianni Shoe 160 Roland Cartier Shoe Total Warehouse Clothing 53 Whistles Clothing 114 Wyevale Garden Centres Garden centres Beijing Hualian 74e China 64 Hualian Hypermarkets 19 Hualian Department 3 49 of countries Singapore 3 Seiyu Department Total 64 BWG Ireland 40 EUROSPAR Supermarkets 107e Supermarkets & 370 SPAR SPAR Express of countries 5 Value Centre Cash & carries United Kingdom J. & J. Foods Cash & carries Total 499 Internationalisation of Food Retailing

16 Food 006 Non-food 006 Carrefour 77, of countries 30 Algeria 1 Carrefour super Argentina 30 Carrefour super 374 Dia Discount 118 Norte Supermarkets Belgium 56 Carrefour Hypermarkets 63 Champion Supermarkets 4 Express 81 GB Supermarkets Brazil 58 Dia Discount 143 Carrefour super China 90 Carrefour Hypermarkets Colombia 31 Carrefour 55 Dia Discount super Cyprus 5 Carrefour Hypermarkets 4 Carrefour Express Supermarkets Dominican Republic 1 Carrefour Hypermarkets Egypt 3 Carrefour Hypermarkets In April 007, Carrefour agreed to acquire Brazilian discount hypermarket operator Atacadao for USD 1.1 billion. Carrefour also has plans to launch its Dia discount chain in Cyprus via franchising. France 18 Carrefour super 105 Champion Supermarkets 848 Ed Discount 134 Promocash Cash & carries 4 Carrefour Petrol stations For counting purposes, France includes overseas departments and territories Guadeloupe, Martinique, New Caledonia, Réunion and French Polynesia. Internationalisation of Food Retailing

17 Food 006 Non-food 006 Carrefour cont Shopi France - French Polynesia Carrefour Hypermarkets 5 Champion Supermarkets France - Guadeloupe 1 Carrefour Hypermarkets 4 Champion Supermarkets France - Martinique Carrefour Hypermarkets France - New Caledonia 4 Champion Supermarkets France - Reunion Carrefour Hypermarkets 17 Champion Supermarkets 61 Globi Greece 0 5 Marinopoulos Supermarkets 0 Carrefour Hypermarkets 165 Champion Marinopoulos Supermarkets 395 Dia Discount Indonesia 9 Carrefour Hypermarkets Italy 56 Carrefour Hypermarkets 989 Dì Per Dì 0 Docks Market Cash & carries 468 GS Supermarkets Jordan 1 Carrefour Hypermarkets Carrefour entered Jordan in December 006 through Carrefour Amman, a joint venture between Carrefour and Majid Al Futtaim. Malaysia 10 Carrefour Hypermarkets Oman 1 Carrefour Hypermarkets Poland 4 Carrefour super Carrefour is set to open its first hypermarket in Bahrain in the second quarter of 008. Internationalisation of Food Retailing

18 Food 006 Non-food 006 Carrefour cont. 15 Carrefour Express Supermarkets Portugal 10 Carrefour 68 Champion Supermarkets super 47 Minipreço Discount Carrefour is to sell its «non-core» hypermarket business in Portugal to Sonae for EUR66 million (USD888 million). It is keeping its Minipreço discount. Qatar Carrefour Hypermarkets Romania 7 Carrefour Hypermarkets Carrefour has acquired Romanian supermarket chain Artima for EUR 55 million. The deal is awaiting regulatory approved. Saudi Arabia 5 Carrefour Hypermarkets Singapore Carrefour Hypermarkets Slovakia 4 Carrefour Hypermarkets Spain 154 Carrefour super 8 Carrefour Express Supermarkets Carrefour has sold its 4 hypermarkets to Solvak companies ICS and ECM group MV in June 007. Carrefour s Dia banner has acquired Tengelmann s 50 Plus discount in Spain. The deal is awaiting regulatory approval. 806 Dia Discount Switzerland 1 Carrefour Hypermarkets Carrefour withdrew from Switzerland in August 007 with the sale of its 50% stake in hypermarket operator Distributis to Coop Switzerland Taiwan 47 Carrefour Hypermarkets Thailand 4 Carrefour Hypermarkets Tunisia 1 Carrefour Hypermarkets Champion Supermarkets Turkey 15 Carrefour Hypermarkets 88 Carrefour Express Supermarkets 435 Dia Discount United Arab Emirates 10 Carrefour Hypermarkets Total Internationalisation of Food Retailing

19 Food 006 Non-food 006 Casino, of countries 30 Argentina 1 Apetito Fast food outlets 9 Hipercasa 5 Leader Price Discount 13 Planet.com 13 Libertad Hypermarkets 3 Libertad Mayorista Cash & carries Bahrain 1 Géant Hypermarkets Belgium 5 Leader Price Discount Benin 1 Leader Price Discount Home furnishing Electronics super Brazil 186 CompreBem Supermarkets 50 Extra Eletro Electronics 83 Extra Hypermarkets 4 Extra Perto 164 Pão de Açúcar Supermarkets 6 Sendas Supermarkets Cameroon Leader Price Discount Score Supermarkets Colombia 46 Exito Hypermarkets Casino has since acquired a controlling stake in Exito Exito Supermarkets 46 Ley Supermarkets 1 Pomona Supermarkets 4 Q Precios Discount Comoros 1 Jumbo Score Hypermarkets 4 Score Supermarkets Snie Cash & carries France 4 COservice Drugstore 367 Casino Supermarkets 1 Beauty Monop Drugstore Internationalisation of Food Retailing

20 Food 006 Non-food 006 Casino cont. 69 Casino Cafétéria Cafeterias 31 Imagica Camera 17 Casitalia 6 Discount Casino Supermarkets 637 Franprix Supermarkets 18 Géant Casino Hypermarkets 3 Géant Discount Hypermarkets 1 Le Marché de Casino Supermarkets 471 Leader Price Discount 10 Monop 310 Monoprix Variety 017 Petit Casino 0 PetitCasino SPAR Vending Machines France - Guadeloupe 15 Casino Cafétéria Cafeterias Monoprix is a JV between Casino and Galeries Lafayette 10 Leader Price Discount France - Martinique 5 Casino Supermarkets 1 Géant Superstore 11 Leader Price Discount Stores France - New Caledonia 7 Casino Supermarkets 1 Géant Hypermarkets 5 Leader Price Discount Stores 5 Vival France - Reunion 7 Casino Supermarkets 6 Agora Music/video 1 Géant Hypermarket Internationalisation of Food Retailing 007 0

21 Food 006 Non-food 006 Casino cont. 8 Jumbo Score Hypermarkets 11 Leader Price Discount 1 Score Supermarkets 5 Vindémia Cash & Carries Gabon 3 Score Supermarkets Latvia 17 Leader Price Discount Operated by IKI under franchise Lebanon 1 Géant Hypermarkets 5 Monoprix Variety Lithuania 75 Leader Price Discount Operated by IKI under franchise Mauritius 3 Score Supermarkets 1 Géant Super 11 Leader Price Discount Franprix Leader Price Discount Jumbo Score Hypermarkets 6 SPAR Supermarkets Mexico 13 Smart & Final Warehouse clubs Morocco 6 Aswak Assalam Supermarkets In February 007 Casino signed a deal to sell its Mexican operations to private equity group Apollo. 4 Franprix Supermarkets 3 Géant Hypermarkets 1 Leader Price Discount Netherlands 1 Edah Supermarkets Konmar Super 357 Super de Boer Supermarkets Poland 77 Leader Price Discount 15 Géant Hypermarkets Casino exited Poland in late 006, selling its Géant hypermarkets to Metro Group and its Leader Price discount to Tesco. Internationalisation of Food Retailing 007 1

22 Food 006 Non-food 006 Casino cont. Saudi Arabia 5 Géant Hypermarkets Senegal 4 Casino Supermarkets & neighbourhood Switzerland 1 Distrigros Cash & carries 7 HyperCasino Hypermarkets PetitCasino 5 SuperCasino Supermarkets Taiwan 15 Géant Hypermarkets Thailand 49 Big C Hypermarkets 1 Leader Price by Big C 10 Mini Big C Discount Togo 1 Leader Price Discount Casino withdrew from Taiwan in late 006, selling its 50% interest in its Taiwanese subsidiary, Far Eastern Géant, to its local partner Far Eastern Department Stores. Tunisia 1 Géant Hypermarkets United Arab Emirates 1 Géant Hypermarkets Uruguay Devoto Supermarkets 5 Disco Supermarkets 1 Géant Hypermarkets USA 185 Smart & Final Warehouse clubs 55 Smart Foodservice Cash & Carry Cash & carries Venezuela 44 Cada Supermarkets In February 007, Casino signed a deal to sell its US operations to private equity group Apollo. 6 Exito Hypermarkets 5 Q Precios Discount Vietnam 6 Big C Hypermarkets Total Internationalisation of Food Retailing 007

23 Food 006 Non-food 006 Cencosud of countries 3 Argentina 39 Disco Supermarkets 9 Easy DIY 13 Jumbo Hypermarkets Chile 1 Jumbo Hypermarkets 3 Almacenes Paris Department 10 Santa Isabel Supermarkets 1 Easy DIY Total Central Retail of countries 5 Hong Kong 4 Page One Book Malaysia 1 Page One Book Singapore 1 Page One Book Taiwan 1 Page One Book Thailand Central Food Hall Food departments 1 Tops Market Supermarkets BS Book Central Department Stores 80 Tops Super Supermarkets 10 Homeworks Department Home furnishing Marks & Spencer Clothing Total Page One Book 70 Power Buy Electronics super 0 Robinson Department 60 Supersports Sport/leisure 1 Zen Department Internationalisation of Food Retailing 007 3

24 Food 006 Non-food 006 Chedraui 03e 3 59 of countries Mexico 94 Chedraui Hypermarkets 9 Suma y Multiplica Warehouse clubs 3 Super Che Supermarkets USA 7 El Super Super Total 113 China Resources Enterprise of countries China 15 China Resources Suguo Hypermarkets Howdy 13 Olé Supermarkets 1000 Suguo Supermarkets 80 Suguo China Resources Vogue Clothing 110 Suguo Super 460 Vanguard Supermarkets 7 Vanguard Super 1 Vanguard Hypermarkets Hong Kong 35 CR Care Stores Healthfood 100 CRVanguard Supermarkets Total Chinese Arts & Crafts Department Internationalisation of Food Retailing 007 4

25 Food 006 Non-food 006 Coles Group 0, of countries Australia 1 1st Choice Liquor 17 Kmart 190 Bi-Lo Supermarkets 75 Kmart Tyre & Auto 545 Coles Supermarkets 95 Officeworks 599 Coles Express Forecourt 59 Target 783 Liquorland Off-licences Pick n Pay hypermarket Hypermarkets New Zealand 13 Kmart Total Department/ variety Car centres Office equipment super Department/ variety Department/ variety Coles Group was acquired by Wesfarmers in 007. The parent company is considering a sale or partial sale of Kmart. Colruyt Net sales (Euro mn) of countries Belgium 3 Bio-Planet Organic food 197 Colruyt Supermarkets 3 EUROSPAR Supermarkets 43 OKay 314 SPAR 31 DreamLand Toy super Colruyt has announced that it will enter the Netherlands in the first half of 008. France 71 CocciMarket Apart from the store operations, Colruyt also runs foodservice operations through Ripotot Collectivités, SA Ets Poirette, Blin, Doumenge, SAS Perache and SAS Galland. 6 Coccinelle Supermarkets & 19 Codi Cash Cash & carries 7 Colruyt Supermarkets Internationalisation of Food Retailing 007 5

26 Colruyt cont. Food 006 Non-food Panier Sympa Total Retail Asia of countries 3 China 84 Circle K Hong Kong 60 Circle K Korea, South 1000 Buy The Way Total 1344 CRA is the exclusive licensee for Circle K in Hong Kong, Macau and southern, eastern and northern China. The Circle K trademark is licensed from The Circle K Stores Inc., USA, part of Canada-based Couche-Tard Coop Italia Croatia 4 Ipercoop Hypermarkets 10,907e Supermarkets & Italy 109 Coop 1 85 Dico Discount of countries 80 Ipercoop super Total 1335 Coop Norden 9, of countries 3 Denmark 346 Dagli Brugsen 350 Fakta Discount 74 Irma Supermarkets 68 Kvickly Super 14 Kvickly xtra Hypermarkets 5 Lokal Brugsen Internationalisation of Food Retailing 007 6

27 Food 006 Non-food 006 Coop Norden cont. 66 Super Brugsen Supermarkets Norway 381 Coop marked 154 Coop mega Supermarkets 18 Coop Obs! Bygg DIY 4 Coop obs! Hypermarkets 31 Coop prix Discount Sweden 38 Coop Extra Supermarkets 38 Coop Bygg 60 Coop Forum Hypermarkets DIY/ garden centres 379 Coop Konsum Supermarkets 184 Coop Nära Supermarkets & Total Costco Canada 68 Costco Warehouse clubs 46,995 Japan 5 Costco Warehouse clubs 0 Korea, South 5 Costco Warehouse clubs 61 Mexico 9 Costco Warehouse clubs of countries Puerto Rico 4 Costco Warehouse clubs 8 Taiwan 4 Costco Warehouse clubs United Kingdom 18 Costco Warehouse clubs USA 354 Costco Warehouse clubs Total 487 Internationalisation of Food Retailing 007 7

28 Food 006 Non-food 006 Costcutter 591e of countries 3 Ireland 11 Costcutter Poland 95 Costcutter United Kingdom 1388 Costcutter Total Numark + Costcutter Supermarkets Couche-Tard 9,634 Canada 77 Dunkin Donuts Fast food outlets Mac s 90 of countries 5 Indonesia Mexico Circle K Circle K Forecourt Forecourt USA 37 Circle K Forecourt USA - Guam 1 Circle K Forecourt Total 5798 Couche-Tard is listed undern certain countries because it licenses, the Circle K banner worldwide. CP Seven Eleven China 43 Lotus Hypermarkets Thailand Eleven 50 of countries Total 387 Internationalisation of Food Retailing 007 8

29 Food 006 Non-food 006 Dairy Farm of countries 9 China Eleven 16 Mannings Drug 55 Maxim s Foodservice Hong Kong Eleven 3 IKEA Furniture 410 Maxim s Foodservice 43 Mannings Drug 1 ThreeSixty Supermarkets 48 Wellcome Supermarkets India 55 Foodworld Supermarkets 4 Health & Glow Drug Indonesia 17 Giant Hypermarkets 134 Guardian Drug 99 Hero Supermarkets 1 Mitra Hard Discount 70 Starmart Discount Korea, South 34 Olive Young Drug Malaysia 58 Giant Supermarkets 5 Photo Finish Singapore Eleven Taiwan 4 Photo processing 8 Giant Hypermarkets 8 Guardian Drug 34 Cold Storage Supermarkets 5 Giant Hypermarkets 46 Shop N Save Supermarkets Jasons Market Place 181 Wellcome Supermarkets Vietnam 6 Wellcome Supermarkets Total Photofinish Photo processing Supermarkets 4 IKEA Furniture Internationalisation of Food Retailing 007 9

30 Food 006 Non-food 006 Dansk Supermarked 780e 7 75 of countries 5 Denmark 14 Bilka Hypermarkets 5 A - Z Department 77 Fotex Super 31 Toj & Sko Clothing 380 Netto Discount Germany 50 Netto Discount Poland 115 Netto Discount Sweden 84 Netto Discount United Kingdom 170 Netto Discount Total Dansk Supermarked acquired the Swedish Netto from its JV partner Ahold ICA Delhaize Group 19, of countries 8 Belgium 186 AD Delhaize Supermarkets 115 Tom & Co Pet shops 39 Cash Fresh Supermarkets 13 Di Drug 9 City Delhaize Supermarkets 19 Delhaize Le Lion Supermarkets 149 Proxy Delhaize Supermarkets 41 Shop n Go Forecourt Czech Republic 94 Delvita Supermarkets In something of an exodus from the territory, Delhaize agreed to sell its Czech division to Rewe for EUR 100 million (USD 133 million) in 007. The move followed earlier retreats by Edeka and Carrefour. Germany City Delhaize Greece 11 A-B City 3 Delvita Proxy Supermarkets 1 Delhaize Supermarkets 30 AB Shop & Go Internationalisation of Food Retailing

31 Food 006 Non-food 006 Delhaize Group cont. 5 Alfa-Beta Mega Super 9 Alfa-Beta Vassilopoulos Supermarkets 10 ENA Cash & carries Indonesia 50 Super Indo Supermarkets Luxembourg 7 AD Delhaize Supermarkets Tom & Co Pet shops 1 City Delhaize Supermarkets Delhaize Le Lion Supermarkets 5 Proxy Delhaize Supermarkets 1 Shop n Go Forecourt Romania 18 Mega-Image Supermarkets USA 39 Bloom Super 18 Bottom Dollar Super 1159 Food Lion Super 158 Hannaford super 68 Harveys Super 107 Sweetbay Super Total Dohle 116e 8 of countries Bulgaria Hit super Germany 1 Gutkauf 1 Heros Super 1 Widdel-Moden Clothing 88 Hit super 3 Jaeger Forecourt Internationalisation of Food Retailing

32 Food 006 Non-food 006 Dohle cont. 1 Kaufhaus Groß Variety 1 SB-Großkauf Cash & carries Total 97 1 Dunnes 1833e of countries 3 Ireland 4 Dunnes 115 Dunnes Variety 1 Dunnes Home Furniture Taste Restaurants Spain 5 Dunnes Variety United Kingdom 35 Dunnes Variety Total Edeka 33,790e 6 85 of countries 4 Austria Denmark ADEG aktiv markt AGM E center Aktiv Super Supermarkets & Cash & carries Super Supermarkets 9 Coma Discount 4 Complet 95 Focus Supermarkets & 87 Merko Germany Ceka Variety 174 Marktkauf DIY 100 CSK 369 E aktiv markt Delivered wholesale (Independent retailers) Supermarkets & 3 Sport Treff Sport/leisure 5 Technik-Partner Electronics Edeka has sold part of its holding in Austrian retailer Adeg, pending a planned full exit. Edeka is to merge its Netto discount division of a 70/30 JV with Tengelmann s Plus from May 008. Internationalisation of Food Retailing 007 3

33 Food 006 Non-food 006 Edeka cont. 11 E C+C großmarkt Cash & carries 49 E center super 770 E neukauf Super 1550 K&U Bakeries 186 Marktkauf 3191 nah & gut, etc. super 1100 Netto Discount 718 NP Discount 63 Profi Beverage Stores Russia 1 Marktkauf Total DIY/ garden centres Edeka is considering an exit from Russia, but has no confirmed plans yet. El Corte Ingles 17,093 4 of countries 4 Belgium Sfera Clothing Greece Sfera Clothing Portugal 1 Supercor Supermarkets El Corte Inglés Department Supermercado El Corte Inglés Food departments 3 Sfera Clothing 8 Telecor Electronics 15 Viagens El Corte Inglés Travel agencies Spain 51 El Corte Inglés In-store restaurants 1 BriCor DIY 34 Hipercor Hypermarkets 67 El Corte Inglés Department 158 Opencor 99 Optica 000 Optical 7 Supercor Supermarkets 37 Sephora Perfumeries Internationalisation of Food Retailing

34 El Corte Ingles cont. Food 006 Non-food Supercor Express Forecourt 63 Sfera Clothing 40 Supermercado El Corte Inglés Food departments Total Telecor Electronics 450 Viajes El Corte Inglés Travel agencies Emke Group Kenya 1 Lulu Centre Department 896e Oman 4 Lulu Hypermarkets Hypermarkets 37 Qatar Lulu Centre Hypermarkets 65 Lulu Hypermarkets Hypermarkets of countries Emirates General United Arab Emirates 7 5 Markets Supermarkets 3 Al Falah Plaza Shopping Centres Emke has announced it will enter India during Lulu Center Supermarkets 3 LuLu Hypermarket Hypermarkets Yemen 1 Lulu Hypermarket Hypermarkets Total 31 4 Eurospin 1703e Italy 650 EuroSpin Discount 85 of countries Slovenia 16 EuroSpin Discount Total 666 Internationalisation of Food Retailing

35 Food 006 Non-food 006 Falabella of countries 4 Argentina 6 Falabella Department Chile 10 San Francisco Super 36 Falabella Department 6 Tottus super 3 Homecenter DIY 6 Sodimac DIY 18 Sodimac Constructor DIY Colombia 1 Falabella Department 10 Homecenter DIY Peru 4 Tottus Hypermarkets 11 Saga Falabella Department Falabella and Distribicion y Servicio, Chile s second and third largest food operators, agreed to merge during 007, effectively removing rival Cencosud from the top slot. The merged company will be better equipped for international expansion, the two companies said. Total Sodimac DIY FamilyMart of countries 7 China Japan Korea, North FamilyMart FamilyMart FamilyMart Korea, South 3469 FamilyMart Taiwan 03 FamilyMart Thailand 538 FamilyMart USA 1 Famima!! Total 131 Internationalisation of Food Retailing

36 Food 006 Non-food 006 Froiz of countries 50 Merca Más Total 30 Portugal 8 Froiz Supermarkets Spain 5 Cash Froiz Cash & carries 163 Froiz Supermarkets 4 Hiper Froiz Super Fu-Com 71e of countries Bahrain 3 Last Chance Super 1 Le Marché Hypermarkets United Arab Emirates 1 Le Marché Super Total 5 Gadisa Portugal 8 San Luis Electronics 886 Spain 1 Cash Ifa Cash & carries 4 0 Claudio 8 of countries 5 Claudio Supermarkets 14 San Luis Electronics 190 Gadis Supermarkets 10 Haley Super Total 419 Internationalisation of Food Retailing

37 Food 006 Non-food 006 Giant Stores 496e 7 40 of countries 3 Lebanon 7 COOP Total 45 Supermarkets & Qatar 5 Giant Hypermarkets Saudi Arabia 13 Giant Stores Hypermarkets Gigante Mexico 5 Bodega Gigante Super Gigante Super 6 59 Super Gigante Supermarkets Super Precio Discount of countries 63 Toks Restaurants USA 9 Gigante Super Total 350 Globus Czech Republic 11 Globus Hypermarkets 7 Globus DIY 3770e Electronics super Germany 37 Globus Hypermarkets 9 Alpha Tecc 16 Globus Baumarkt DIY of countries 3 Russia 1 Hyperglobus Hypermarkets Total Internationalisation of Food Retailing

38 Food 006 Non-food 006 H.E. Butt 9,007e 7 90 of countries USA 78 H-E-B Total 303 Mexico 5 H-E-B Hypermarkets super Heiwado of countries China 1 Hunan Heiwado Hypermarkets Japan 33 AL Plaza Heiwado Hypermarkets 50 ABC Book Center Book 84 COCO S Restaurants The COCO s outlets are operated under licence 30 Friend Mart Supermarkets 44 Heiwado Super 30 KFC Fast food outlets KFC outlets operated under licence 1 Super Friend Supermarkets 1 Viva City Hypermarkets Yanagen Department 7 Yanagen Store Super Yell Hypermarkets Total Internationalisation of Food Retailing

39 Food 006 Non-food 006 IKI of countries 5 Ikiukas Total 106 Latvia 6 IKI Supermarkets Lithuania 75 IKI Supermarkets IKI also operates Leader Price in Latvia and Lituania under franchise from Casino. See Casino entry for details. ITM (Intermarché) 7,080e of countries 8 Belgium 47 Intermarché Supermarkets 18 Écomarché Bosnia and Herzegovina 1 InterEx Supermarkets France 31 Ecomarché Supermarkets 539 Bricomarché DIY 1474 Intermarché Supermarkets 8 Espace Temps Music/video 350 Le Relais des Mousquetaires 7 Logimarché DIY 407 Netto Discount 134 Roady Car centres 79 Restaumarché Restaurants 15 Vêti Clothing Poland 115 Intermarché Supermarkets Portugal 58 Écomarché Supermarkets & 40 Bricomarché DIY 130 Intermarché Supermarkets 4 Bricomarché DIY 3 Netto Discount 3 Stationmarché Car centres 15 Vêti Clothing Romania 8 InterEx Supermarkets Serbia 5 Interex Supermarkets Spain 57 Intermarché Supermarkets Total Internationalisation of Food Retailing

40 Food 006 Non-food 006 Jerónimo Martins of countries Poland 905 Biedronka Discount Portugal 9 Feira Nova Supermarkets Total Feira Nova Hypermarkets 0 Pingo Doce Supermarkets 35 Recheio Cash & carries Operations include JMR, a JV with Ahold (which owns a 49% minority stake), comprising the Portugese mainland retail operations but excluding all cash & carry and island activities Kesko 8, of countries 7 Estonia Asko Furniture Finland 100 K pikkolo 6 Kesko Agro Agricultural supply 6 K-rauta DIY 4 Sotka Furniture 105 Andiamo Shoe 53 K-citymarket Hypermarkets 35 Anttila Department 18 Kespro Foodservice 31 Asko Furniture K-extra 110 K-food Supermarkets & 1 Budget Sports Sport/leisure 97 Intersport Sport/leisure 48 K-market Supermarkets 15 K Non-food 5 K-market Cassa Discount 99 Kesko Agro Agricultural supply 15 K-supermarkets Supermarkets 41 K-Rauta DIY 180 Pikoil Forecourt 60 Musta Pörssi Electronics ICA (majority-owned by Ahold) aqcuired Kesko s stake in the JV Rimi Baltic, which operated grocery in Estonia, Latvia and Lithuania in 006 Internationalisation of Food Retailing

41 Food 006 Non-food 006 Kesko cont. 105 Rautia DIY 5 Sotka Furniture Latvia 7 Kesko Agro Lithuania 4 Kesko Agro 18 Tähti Optikko Optical Agricultural supply 7 K-rauta DIY Agricultural supply 16 Senukai DIY Norway 134 Byggmakker DIY Russia 7 K-Rauta DIY Sweden 3 Asko Furniture Total K-rauta DIY Konzum of countries 3 Bosnia and Herzegovina 1 VELPRO Cash & carries Croatia 48 Konzum 60 Konzum Maxi Supermarkets 13 Super Konzum Supermarkets 0 Kozmo Drug Croatian food group Agrokor and Serbian conglomerate Delta Holding have agreed to merge their retail operations, bringing Konzum and Delta M under the same operational umbrella. The deal will fund further expansion. 3 Super Konzum Super 14 VELPRO Cash & carries Serbia 1 Konzum Hypermarkets 1 VELPRO Cash & carries Total Internationalisation of Food Retailing

42 Food 006 Non-food 006 Lawson of countries China 91 LAWSON Japan 8380 LAWSON 4 LAWSON Forecourt 80 LAWSON STORE 100 Discount 100 Total 8855 NATURAL LAW- SON Leclerc 7,750e 6 61 of countries 6 France 6 L 431 Leclerc super 69 Brico Jardi DIY/ garden centres 10 Espace Culturel Music/video 75 Leclerc Supermarkets 94 L Auto Car centres 10 Leclerc Forecourt 5 Sport & Loisirs Sport/leisure 6 Leclerc Express Discount Italy 6 Leclerc super Poland 13 Leclerc super 5 Leclerc Supermarkets 1 Espace Culturel Music/video Portugal 15 Leclerc Supermarkets Slovenia 1 Leclerc Hypermarkets Spain 7 Leclerc super 1 Leclerc Supermarkets Total Espace Culturel Music/video Internationalisation of Food Retailing 007 4

43 Food 006 Non-food 006 Louis Delhaize 10, of countries 8 Belgium 6 Concept Plus 9 Cora Hypermarkets 3 Délitraiteur Delicatessens 70 Delto 300 Louis Delhaize 1 Louis Delhaize l Epicier 55 Match Supermarkets 66 Smatch France 59 Cora Hypermarkets 4 Animalis Pet shops 156 Match Supermarkets 54 Truffaut Garden centres French Guiana 1 Cora Hypermarkets Guadeloupe Cora 8 Ecomax Discount 3 Leader Price Discount Match Supermarkets super 4 Ecomax Discount 10 Match Supermarkets Hungary 1 Alfa Cash & carries 7 Cora Hypermarkets 135 Match Supermarkets & 75 Profi Discount Luxembourg Cora Hypermarkets Internationalisation of Food Retailing

44 Louis Delhaize cont. Food 006 Non-food Match Supermarkets 9 Smatch Martinique 1 Cora Super 19 Ecomax Discount 5 Match Supermarkets Romania 3 Cora Hypermarkets 6 Profi Discount Total Manuel Nunes 136e Mozambique Mega Cash & carries 8 71 of countries Portugal 9 Manuel Nunes Cash & carries Total 9 Marks & Spencer of countries Hong Kong Ireland 8 13 Marks & Spencer Marks & Spencer Variety Variety 3 Marks & Spencer Specialist food 3 Simply Food United Kingdom 315 Marks & Spencer Department/ variety Marks & Spencer 194 Simply Food Total 533 Specialist food Lisings refer to wholly-owned. Marks & Spencer entered Taiwan during 007 via a JV with President Chain Stores. But CEO Stuart Rose has said that whollyowned international expansion is back on the agenda for M&S, beginning with a return to France. Internationalisation of Food Retailing

45 Food 006 Non-food 006 Massmart of countries 9 Botswana Game Variety 6 Trident Cash & carries Lesotho 3 CBW Wholesalers Cash & carries Mauritius Game Variety Namibia 3 CBW Wholesalers Cash & carries 3 Game Variety Nigeria 1 Game Variety South Africa 64 CBW Wholesalers Cash & carries 81 Game Variety 7 Jumbo Cash & carries 15 Builders Express 13 Makro Warehouse clubs 3 Uganda Game Variety Builders Trade Depot Builders Warehouse DIY/ garden centres DIY DIY Zambia Game Variety Zimbabwe Makro Warehouse clubs Total Matahari China Matahari Department 737 Boston Drugs Indonesia 5 Cut Price Discount 36 Pharmacy 1 Drug Childrenswear 33 foodmart Supermarkets 10 KidsKids 31 of countries 7 hypermart Hypermarkets 83 Matahari Department 110 Time Zone Other turnover Total Internationalisation of Food Retailing

46 Food 006 Non-food 006 Maxima of countries 5 Bulgaria 15 T-Market Supermarkets Estonia 3 Maxima Super 35 T-Market Supermarkets Latvia Hyper Maxima Hypermarkets 11 Maxima Super 3 Mini Maxima Supermarkets 100 T-Market Supermarkets Lithuania 11 Baze Supermarkets 1 Ermitažas DIY 4 Hyper Maxima Hypermarkets 15 Maxima Super Maxima Baze Hypermarkets 17 Media Supermarkets 8 Minima 145 T-Market Supermarkets Romania 30 Albinuta Discount Total 41 1 Mega Mart China Mega Mart Hypermarkets 583e Korea, South 11 Mega Mart Hypermarkets of countries Total 13 Internationalisation of Food Retailing

47 Food 006 Non-food 006 Mercator of countries 4 Bosnia and Herzegovina 3 Mercator super 3 Mercator Supermarkets Croatia 54 Mercator 15 Mercator Supermarkets 9 Mercator super Serbia 4 Mercator super Mercator Supermarkets 50 Rodic 4 Rodic Mega Market Supermarkets & Hypermarkets Slovenia 14 Hura! Discount 1 Maxi Department 605 Mercator 147 Mercator Supermarkets 0 Mercator super 11 Mercator Cash & carries Total Mercator Non-food Mercator has agreed a strategic tie-up with Mex in Montenegro. Internationalisation of Food Retailing

48 Food 006 Non-food 006 Metcash (Australia) of countries Australia 16 Australian Liquor Marketers Cash & carries 48 Campbells Cash & Carry Cash & carries 710 IGA Supermarkets 30 IGA Xpress 90 Independent Brands Australia Liquor 380 Supa IGA Supermarkets 16 Quickstop Forecourt New Zealand 5 Tasman Liquor Cash & carries Total 3785 Metcash (South Africa) 599e of countries 7 Angola 13 Metro Cash & carries Botswana 440 Lucky 7 6 Metro Cash & carries Metsef Trade Centre Cash & carries Malawi 5 McConnell Cash & Carry Cash & carries 5 Metro Cash & Carry Cash & carries 115 People s Trading Centre Supermarkets Mozambique Metro Cash & carries South Africa 40 Friendly 7-Eleven 4 Stax Electronics super Internationalisation of Food Retailing

49 Food 006 Non-food 006 Metcash (South Africa) cont. 6 Friendly Everyday 100 IGA Friendly Grocer Supermarkets 147 Metro Cash & carries 4 Solly Kramer s Liquor 16 Trade Centre Cash & carries Uganda 8 Kwiksave Supermarkets 0 Lucky 7 Metro Cash & carries Zimbabwe 17 Jaggers Cash & carries 60 Lucky 7 4 Trador Cash & carries Total Metro Group Austria 13 Adler Clothing 59,88 Electronics super 3 Dinea Restaurants 17 Media Markt 55 Metro Cash & 1 48 Carry Cash & carries of countries Electronics super Saturn Belgium 9 Makro Cash & carries 15 Galeria Inno Department Bulgaria 8 Metro Cash & Carry Cash & carries China 33 Metro Cash & carries 11 Media Markt Electronics super Internationalisation of Food Retailing

50 Metro Group cont. Croatia 6 Food 006 Non-food 006 Metro Cash & Carry Cash & carries Czech Republic 1 Makro Cash & carries Denmark 4 France 86 Metro Cash & Carry Metro Cash & Carry Germany 68 Comet Cash & carries Cash & carries 4 Planète Saturn Electronics super 107 Adler Clothing 05 Dinea Restaurants 114 Kaufhof Department 58 Extra Super 19 Media Markt 10 Metro Cash & carries 11 Saturn Electronics super Electronics super 37 Real Hypermarkets 13 Sportarena Sport/leisure Greece 7 Makro Cash & carries 5 Media Markt Hungary 13 Metro Cash & Carry India 3 Metro Cash & carries Italy 47 Metro Cash & Carry Japan 3 Metro Cash & carries Cash & carries 13 Media Markt 3 Saturn Cash & carries 69 Media World 7 Saturn Electronics super Electronics super Electronics super Electronics super Electronics super Luxembourg Adler Clothing Moldova 3 Metro Cash & Carry Cash & carries Morocco 6 Makro Cash & carries Metro entered Pakistan during 007, with a Cash & Carry format Internationalisation of Food Retailing

51 Metro Group cont. Food 006 Non-food 006 Netherlands 16 Makro Cash & carries Media Markt 1 Saturn Poland 49 Real Hypermarkets 9 Media Markt 5 Makro Cash & carries 4 Saturn Portugal 10 Makro Cash & carries 4 Media Markt Romania 3 Metro Cash & carries 8 Real Hypermarkets Electronics super Electronics super Electronics super Electronics super Electronics super Russia 31 Metro Cash & Carry 6 Real Hypermarkets Cash & carries 3 Media Markt Electronics super Serbia 5 Metro Cash & carries Slovakia 5 Metro Cash & Carry Cash & carries Spain 34 Makro Cash & carries 36 Media Markt 3 Saturn Sweden Media Markt Switzerland 17 Media Markt Turkey 10 Metro Cash & Carry Cash & carries 8 Real Hypermarkets Electronics super Electronics super Electronics super Electronics super Ukraine 13 Metro Cash & carries United Kingdom 33 Makro Cash & carries Vietnam 7 Metro Cash & carries Total Internationalisation of Food Retailing

52 Food 006 Non-food 006 Migros 13, of countries 3 France MMM Migros super Germany 3 MM Migros Super Switzerland 31 avec Kiosks 119 Ex Libris Book 15 Giro-Detaillisten 13 Globus Department 89 M Migros Supermarkets 95 Globus Office World Office equipment Herren-Globus Clothing 140 Migrol Forecourt 8 Interio Furniture 14 Migros Restaurant Restaurants 9 m-electronics Electronics 07 Migros-Restaurant In-store restaurants 10 M-Parc Garden centres 03 MM Migros Super 37 Micasa Furniture 40 MMM Migros Hypermarkets 44 sportxx Sport/leisure Total Migros Türk of countries 7 Azerbaijan 3 Ramstore Supermarkets Bulgaria 3 Ramstore Supermarkets Kazakhstan 7 Ramstore Supermarkets 1 Ramstore Super Kyrgyzstan 1 Ramstore Supermarkets Macedonia Ramstore Supermarkets Russia 53 Ramstore Supermarkets 11 Ramstore super Turkey 357 Sok Discount Migros Türk has ceased operations in Bulgaria and divested its stake in its Russian JV Ramenka to its partner, Enka. Meanwhile, the company itself is up for sale, leaving limited visibility on future expansion. Internationalisation of Food Retailing 007 5

53 Food 006 Non-food 006 Migros Türk cont. 400 Bakkalim Kiosks 8 MakroCenter Supermarkets 3 Migros Hypermarkets 84 M-Migros Supermarkets 84 MM-Migros Supermarkets 34 MMM-Migros Super 36 Tansas Maxi Supermarkets Total 187 Musgrave of countries 3 Ireland 407 Centra 94 Daybreak 66 DayToday 7 Musgrave Retailer Services Cash & carries 180 Super Valu Supermarkets Spain 17 Cash Dialsur Cash & carries 53 Dialprix Supermarkets 60 Dicost United Kingdom 18 Budgens 18 Super Valu Supermarkets 83 Centra 106 DayToday Supermarkets & Musgrave operates as both retailer and wholesaler, supplying and managing banners on behalf of independent retailers. Internationalisation of Food Retailing

54 Musgrave cont. Total 330 Food 006 Non-food Londis Musgrave Retailer Services Cash & carries 38 Super Valu Supermarkets Norma 960e Austria 10 Norma Discount 1 Czech Republic 40 Norma Discount 86 of countries 4 France 116 Norma Discount Germany 150 Norma Discount 6 Total Roth Drogerie- Markt Drug Olimpica of countries Colombia 106 Supertiendas Olimpica 0 Superdroguerías Olimpica Supermarkets 1 Droguerías Olimpica Costa Rica 65 Megasuper Supermarkets 10 Superalmacenes Olimpica Pharmacies Department Total Internationalisation of Food Retailing

55 Food 006 Non-food 006 Panda 84e 17 8 of countries Saudi Arabia 5 Panda Supermarkets 5 Hyper Panda Hypermarkets United Arab Emirates 1 Hyper Panda Hypermarkets Total 58 Paterson 300e 89 of countries Russia 90 Paterson Supermarkets Paterson Super Ukraine 1 Paterson Supermarkets Total 93 Picard 1011e 3 9 of countries France Italy Picard Picard Total 695 Supermarkets & Supermarkets & Internationalisation of Food Retailing

56 Food 006 Non-food 006 Pick n Pay of countries 6 Australia 8 Franklins Supermarkets Botswana 4 Pick n Pay Family Stores Supermarkets & 16 Score Supermarkets Namibia 14 Pick n Pay Family Supermarkets Supermarkets South Africa 60 Boxer Supermarkets Pick n Pay Family Supermarkets 16 Pick n Pay Hypermarkets Swaziland 1 Pick n Pay Garages Pick n Pay Liquor Store Pick n Pay Supermarkets Supermarkets 10 Forecourt Liquor Supermarkets 17 Score Supermarkets Pick n Pay Family Supermarkets Supermarkets 7 Score Supermarkets Zimbabwe 54 TM Supermarkets Supermarkets Total Pick n Pay Clothing Stores Pick n Pay HealthPharm Clothing Drug President Chain Store of countries 5 Canada 15 T&T Supermarket Super China 104 Starbucks Fast food outlets 7 Cosmed Drug Philippines 87 7-Eleven 38 Unimart Supermarkets Unimart Hypermarkets Internationalisation of Food Retailing

57 President Chain Store cont. Food 006 Non-food 006 Taiwan Eleven 16 Mister Donut Fast food outlets 9 Muji Variety 189 Starbucks Fast food outlets Vietnam 1 Unimart Supermarkets Total Cosmed Drug President signed a JV with UK retailer Marks & Spencer to bring the upscale variety banner to Taiwan. PriceSmart of countries 1 Aruba 1 PriceSmart Warehouse clubs Barbados 1 PriceSmart Warehouse clubs Costa Rica 3 PriceSmart Warehouse clubs Dominican Republic PriceSmart Warehouse clubs El Salvador PriceSmart Warehouse clubs Guatemala PriceSmart Warehouse clubs Honduras PriceSmart Warehouse clubs Jamaica 1 PriceSmart Warehouse clubs Nicaragua 1 PriceSmart Warehouse clubs Panama 4 PriceSmart Warehouse clubs Trinidad and Tobago PriceSmart Warehouse clubs USA PriceSmart Warehouse clubs Total 3 Rautakirja of countries 4 Estonia 03 R-Kiosk Kiosks Finland 713 R-Kiosk Kiosks Apollo Book Estonia Suomalainen Kirjakauppa Book Finland Internationalisation of Food Retailing

58 Rautakirja cont. Total Food 006 Non-food 006 Latvia 408 Narvesen Kiosks Lithuania 550 Lietuvos Spauda Kiosks Veikkausrasti Betting shops Finnkino Wholesale (other non-foods) Finland Finland Reitan Denmark Eleven Forecourt Eleven 4 15 Rema 1000 Discount 79 of countries Norway Eleven Eleven Forecourt 460 Narvesen 380 Rema 1000 Discount Sweden 74 7-Eleven 33 Pressbyran 5 Rema 1000 Discount Total Spaceworld Electronics 1 Esthetique Perfumeries Rewe Austria 13 Big Billa Supermarkets 534 Bipa Drug 43, Billa Supermarkets Emma 76 of countries 105 Merkur Supermarkets Penny Discount 19 Sutterlüty Supermarkets Internationalisation of Food Retailing

59 Food 006 Non-food 006 Rewe cont. Bulgaria Billa Supermarkets Croatia 50 Billa Supermarkets Czech Republic 80 Billa Supermarkets 165 Penny Discount Germany 4 Akzenta Super 664 Atlasreisen Travel agencies 3 C-Gro Cash & carries 9 Klee Garden centres 67 Karstadt Food departments 104 Kaufpark Supermarkets 53 ProMarkt 1 Kressner Clothing Electronics super 1 Kölner Weinkeller Wine cellars 48 Toom BauMarkt DIY 753 nahkauf, etc. 1 Netto Discount 040 Penny Discount 899 REWE Supermarkets 1080 Rewe Center, Akzenta, Contra etc. Supermarkets 44 Selgros Cash & carries 1 Standa Supermarkets 10 Toom Beverage Stores 85 Toom Hypermarkets 3 Vierlinden Organic food Hungary 158 Penny Discount Italy 75 Billa Supermarkets 6 Bipa Drug 1 Iper Standa Super 7 Penny Discount Internationalisation of Food Retailing

60 Rewe cont. 116 Food 006 Non-food 006 Standa Supermercati Supermarkets Poland Billa Supermarkets 11 Selgros Cash & carries Romania 4 Billa Supermarkets 6 Penny Discount 5 Penny XXL Discount 13 Selgros Cash & carries Russia Billa Supermarkets & Slovakia 87 Billa Supermarkets Switzerland Prodega Cash & carries Ukraine 9 Billa Supermarkets Total Safeway (USA) Canada Safeway Super 3,09 Mexico 17 Casa Ley super 17 Carrs Quality USA 4 76 Centers Super of countries Dominick s Finer 3 98 Foods super 40 Total 1888 Genuardi s Family Markets 11 Randalls 96 Safeway super super super 303 Vons Super Casa Ley is 51%-owned by the Ley Lopez family. The remaining 49% is owned by Safeway. Internationalisation of Food Retailing

61 Food 006 Non-food 006 Schwarz Group 41,730e of countries 3 Austria 154 Lidl Discount Belgium 70 Lidl Discount Bulgaria 9 Kaufland super Croatia 19 Kaufland super 15 Lidl Discount Czech Republic 7 Kaufland super 160 Lidl Discount Denmark 38 Lidl Discount Finland 110 Lidl Discount France 1307 Lidl Discount Germany 733 Lidl Discount 4 Mega Cent 510 Kaufland super Greece 179 Lidl Discount Discount (non-food) Hungary 61 Lidl Discount Ireland 79 Lidl Discount Italy 397 Lidl Discount Luxembourg Lidl Discount Netherlands 0 Lidl Discount Norway 51 Lidl Discount Poland 185 Lidl Discount 75 Kaufland super Portugal 18 Lidl Discount Internationalisation of Food Retailing

62 Schwarz Group cont. Food 006 Non-food 006 Romania 18 Kaufland super Slovakia 75 Lidl Discount 8 Kaufland super Spain 415 Lidl Discount Sweden 10 Lidl Discount United Kingdom 404 Lidl Discount Total Sedmoi Kontinent Belarus 1 Pro-Store Hypermarkets 763 Russia 4 Nash Gipermarket Hypermarkets Sedmoi Kontinent Supermarkets of countries Total 13 Seven & I 33, of countries 9 Australia Eleven Canada Eleven China 50 7-Eleven 8 Ito-Yokado Hypermarkets Via two local JVs 1 Wang fu jing Yokado super Seven & I Holdings Co was established by the three major companies of Ito-Yokado Group (Ito-Yokado, Seven-Eleven Japan and Denny s Japan) in 005. The three companies were delisted from the stock market and became whollyowned subsidiaries of Seven & I Holdings Co Ltd. Seven & I operates in Australia via its franchised c-store chain, 7-Eleven Stores Pty Ltd. Wholly-owned subsidiary of 7-Eleven Inc. (USA) Beijing via JV controlled by Seven-Eleven Japan Via JV with Beijing Wangfujing Department Store Internationalisation of Food Retailing 007 6

63 Seven & I cont. Japan Eleven Food 006 Non-food Eleven Forecourt 5 Oshman s 59 Mary Ann Clothing The majority of Japanese 7-Eleven are franchised. Hobby/leisure 585 Denny s Restaurants 3 Robinson s Department 33 Famil Restaurants 16 Seibu Department 174 Ito-Yokado Hypermarkets 1 Sogo Department 3 Ito-Yokado Marudai Hypermarkets Ito-Yokado Sanei Supermarkets 36 Loft Variety 141 POPPO Fast food outlets 17 Super Kadoya Supermarkets 18 The Garden Supermarkets 18 York-Benimaru Super 58 YorkMart Supermarkets Malaysia Eleven Mexico Eleven Turkey 74 7-Eleven USA Eleven USA - Puerto Rico 14 7-Eleven Total Franchise held by Shopping Sdn Bhd. JV between Gupo Chapa and 7-Eleven Inc. (USA) Stores operated through Seven & I s wholly-owned subsidiary 7-Eleven Inc. (USA). Store numbers are listed for all 7-Eleven company-owned, franchised and licensed operations worldwide in view of Seven & I s ownership of 7-Eleven Inc. (USA). However, the sales figure given for Seven & I represents consolidated net sales only. Franchise held by PR-7 Acquisition of Prime Time Group. Internationalisation of Food Retailing

64 Food 006 Non-food 006 Shinsegae of countries China 7 E-mart Hypermarkets Korea, South 103 E-mart Hypermarkets 6 Shinsegae Department 180 Starbucks Fast food outlets Starbucks operated under franchise. Total 90 6 Shoprite of countries 17 Angola 3 Shoprite Super 5 Usave Discount Botswana Checkers Supermarkets 6 OK Furniture Furniture 5 Hungry Lion Fast food outlets 3 Megasave Cash & carries 4 OK Foods Supermarkets 3 OK Grocer Supermarkets 4 Shoprite Supermarkets Ghana 6 Usave Discount India 3 Shoprite Hyper Hypermarkets Lesotho 3 Hungry Lion Fast food outlets OK Furniture Furniture 4 Shoprite Supermarkets Madagascar 8 Shoprite Supermarkets Malawi 3 Shoprite Supermarkets 3 Usave Discount Mauritius 1 Shoprite Hyper Super Mozambique Hungry Lion Fast food outlets 4 Shoprite Supermarkets Internationalisation of Food Retailing

65 Food 006 Non-food 006 Shoprite cont. Namibia 4 Checkers Super 8 OK Furniture Furniture Hungry Lion Fast food outlets 8 Megasave Cash & carries 5 OK Foods Supermarkets 9 OK Grocer Supermarkets 5 OK MiniMark 30 Sentra 9 Shoprite Supermarkets 8 Usave Discount 9 Value Supermarkets Nigeria Shoprite Supermarkets South Africa 110 Checkers Super 5 House & Home Furniture 4 Checkers Hyper Hypermarkets 140 OK Furniture Furniture 48 Hungry Lion Fast food outlets 35 Megasave Cash & carries 17 OK Foods Supermarkets 50 OK Grocer Supermarkets 4 OK MiniMark 67 Sentra 70 Shoprite Supermarkets 100 Usave Discount 8 Value Supermarkets & Swaziland Hungry Lion Fast food outlets 1 OK Furniture Furniture Internationalisation of Food Retailing

66 Food 006 Non-food 006 Shoprite cont. 3 Shoprite Supermarkets Tanzania Megasave Cash & carries 7 Shoprite Supermarkets Uganda Megasave Cash & carries 4 Shoprite Super Zambia 1 Megasave Cash & carries 19 Shoprite Supermarkets Zimbabwe Shoprite Supermarkets Total SHV Makro 4, * 80 of countries 9 Argentina 15 Makro Cash & carries Brazil 53 Makro Cash & carries China 5 Makro Cash & carries Colombia 9 Makro Cash & carries Indonesia 19 Makro Cash & carries Netherlands Pakistan 1 Makro Cash & carries Philippines 15 Makro Cash & carries *SHV Makro is based in the Netherlands, but has no operations there Thailand 9 Makro Cash & carries 19 Venezuela 6 Makro Cash & carries Total Makro Office Centre Office equipment Internationalisation of Food Retailing

67 Food 006 Non-food 006 SOK of countries 3 Estonia 5 Prisma Hypermarkets Sokos Hotels Finland 56 Alepa Discount 30 ABC Petrol stations 46 Prisma Hypermarkets 147 Agrimarket Agricultural supply 17 Rosso Restaurants 1 Kodin Terra DIY 409 S Markets Supermarkets 47 SOK Car centres 00 Sale Discount 17 SOK Non-food 9 SOK SOK 3 SOK Cafés Cafeterias 80 SPAR Supermarkets & Latvia 1 Prisma Hypermarkets Total Sokos Hotels 0 Sokos Department SPAR (Austria) 7134e of countries 6 Austria 53 INTERSPAR super 7 Maximarkt Hypermarkets 1369 SPAR Supermarkets Croatia 3 Interspar super Czech Republic 4 INTERSPAR super Hungary 6 INTERSPAR 1 SPAR Supermarkets super 73 Hervis Sport/leisure 1 Hervis Sport/leisure 10 Hervis Sport/leisure 1 Hervis Sport/leisure Internationalisation of Food Retailing

68 SPAR (Austria) cont. Food 006 Non-food 006 Italy INTERSPAR Slovenia 9 INTERSPAR 1 Kaiser s Supermarkets 14 SPAR Supermarkets super 510 SPAR Supermarkets super 54 SPAR Supermarkets Total Hervis Sport/leisure SPAR (South Africa) of countries 4 Botswana 3 KWIKSPAR 1 SPAR Supermarkets 4 SUPERSPAR Super Namibia SPAR Supermarkets South Africa 176 KWIKSPAR 478 SPAR Supermarkets 145 SUPERSPAR Super 16 Tops Liquor 5 Build it DIY 1 Build it DIY Swaziland Build it DIY Total Internationalisation of Food Retailing

69 Food 006 Non-food 006 Spinneys 443e of countries Oman 7 Spinneys Al Fair Supermarkets United Arab Emirates 30 Spinneys Super 4 Spinneys Market Total 41 Spinneys (LEB) 136e 8 Egypt 1 Spinneys Hypermarkets 75 Lebanon 6 Spinneys of countries super Total 7 Système U 8,37e 1 85 of countries 6 France 48 Hyper U super 143 Marché U Supermarkets 67 Super U Supermarkets Super U Light Discount France - Martinique Hyper U Hypermarkets France - Mauritius Super U Supermarkets France - New Caledonia Super U Supermarkets France - Reunion 10 Super U Supermarkets France - Tahiti 1 Super U Supermarkets Total 88 Internationalisation of Food Retailing

70 Food 006 Non-food 006 Tengelmann 3,007e 4 60 of countries 15 Austria 358 Zielpunkt Discount 40 KiK Clothing 37 OBI DIY Bosnia and Herzegovina 6 OBI DIY Czech Republic 16 Plus Discount 1 OBI DIY Germany 704 Kaiser s Supermarkets 088 KiK Clothing 897 Plus Discount Greece 30 Plus Discount 490 TEDI 330 OBI Discount (non-food) DIY/ garden centres Hungary 190 Plus Discount 18 OBI DIY Italy 39 OBI DIY Poland 00 Plus Discount 8 OBI DIY Portugal 65 Plus Discount Romania 34 Plus Discount Russia 11 OBI DIY/ garden centres Slovenia 4 OBI DIY Tengelmann sold 70% of its German Plus banner to Edeka in November 007. Spain 47 Plus Discount Discount network sold to Carrefour in 007. Switzerland 10 OBI DIY USA 75 A&P Supermarkets Acquisition of Pathwork in A&P Liquor Stores Liquor 45 A&P Super Foodmart Super 66 Farmer Jack Supermarkets 16 Food Basics Super 31 Sav-A-Center Supermarkets Internationalisation of Food Retailing

71 Food 006 Non-food 006 Tengelmann cont. 81 Super Fresh Super 6 The Food Emporium Super 77 Waldbaum s Hypermarkets Total Tesco 6, of countries 13 China 47 Hymall Hypermarkets Czech Republic 46 Tesco super 9 Tesco Supermarkets 6 Tesco Department 3 Tesco Expres France 1 Tesco Vin-Plus Off-licences Hungary 67 Tesco super 34 Tesco Supermarkets Ireland 68 Tesco Supermarkets Japan Tesco Super 11 Tesco Express 1 Tesco Extra Hypermarkets Foodlet Tsurukame Discount 4 Masushin Cash & carries 40 Tsurukame Supermarkets 51 Tsurukame Land Supermarkets Tesco entered the US in November 007, with an initial six outlets of its new banner Fresh & Easy Market. The UK retailer plans 100 Fresh & Easy outlets in the US by 008. Tesco Express convenience banner opened in Hungary in 007 Tesco opened its first Japanese outlets under its own name in 007 Internationalisation of Food Retailing

72 Tesco cont. Food 006 Non-food 006 Korea, South 5 Homeplus 39 Homeplus Express super Malaysia 19 Tesco Hypermarkets Poland 8 Tesco 3 Tesco Express Supermarkets 5 Tesco Slovakia 37 Tesco Thailand 9 Talad Lotus Supermarkets & super super 6 Tesco Supermarkets 75 Tesco Lotus 66 Turkey 15 Kipa Tesco Lotus Express 15 Kipa Ekspres United Kingdom 506 One Stop Supermarkets & super super 433 Tesco Super 735 Tesco Express 147 Tesco Extra Hypermarkets 5 Tesco Homeplus Variety 16 Tesco Metro Supermarkets 5 Tesco Department Tesco said it would buy Makro s eight in Malaysia for an undisclosed sum Tesco Express convenience banner opened in Slovakia in 007 Total Internationalisation of Food Retailing 007 7

73 Food 006 Non-food 006 The Sultan Center 40e of countries 3 Jordan 9 Safeway Supermarkets Kuwait 7 The Sultan Center Super Oman 4 Total 7 The Sultan Center Hypermarkets 5 TSC X-Press Wholesale Centers Hypermarkets Tradeka Finland 6 Euromarket Hypermarkets 34 Restel Hotels Hotels Neste Quick Shop 37 Restel Cafeterias 8 of countries 550 Siwa 183 Valintatalo Supermarkets Russia 4 Siwa 6 Super Siwa Supermarkets Total Uchumi Kenya 10 Uchumi Supermarkets 51e 3 Uchumi Hyper Hypermarkets Uganda 1 Uchumi Supermarkets of countries Total 14 Internationalisation of Food Retailing

74 Food 006 Non-food 006 Uny 8, of countries Hong Kong 1 APITA Department Japan Ichiba Discount 156 Molie Clothing 83 APITA Hypermarkets 59 Palemo Clothing 3057 Circle K 1 Fork Talk 19 Roughox Clothing 557 Sagami Clothing 6 Joy Mart Uny Super 89 Suzutan Clothing 10 La: Foods Core Supermarkets 9 U-Home DIY 378 Sunkus 48 Uny Hypermarkets 73 U-Store Super Total Veropoulos Greece 9 Chalkiadakis Supermarkets 701e 38 Panemporiki Supermarkets SPAR Supermarkets 89 Macedonia 8 Vero Supermarkets of countries 3 Serbia Super Vero Super Total 07 Internationalisation of Food Retailing

75 Food 006 Non-food 006 Wal-Mart 74, of countries 14 Argentina 13 Wal-Mart Supercenter Hypermarkets Brazil 36 Big Hypermarkets 3 Hiper Magazine Book super 67 Bompreço Supermarkets 8 Bompreço 31 Hiper Bompreço super 10 Maxxi Atacado Cash & carries 4 Mercadorama Supermarkets 69 Nacional Supermarkets 19 Sam s Club Warehouse clubs 9 Todo Dia Hypermarkets 6 Wal-Mart Supercenter Hypermarkets Canada 6 Sam s Club Warehouse clubs 76 Wal-Mart 7 Wal-Mart Supercentre Discount super Hypermarkets China 3 Sam s Club Warehouse clubs Wal-Mart Neighborhood Market Supermarkets 68 Wal-Mart Supercenter Hypermarkets Costa Rica 4 Hipermas Hypermarkets 3 Mas-x-menos Super During 007, Wal-Mart signed a deal to enter India with local firm Bharti. For regulatory reasons, Bharti will own and operate the, while Wal-Mart will licence its name and provide logistics and back-office support. The partners plan rapid and widespread expansion in India. Wal-Mart acquired a 35% stake in Trust-Mart parent company Bounteous during 007, with a view to a gradual merger of the banners. Internationalisation of Food Retailing

76 Food 006 Non-food 006 Wal-Mart cont. 8 Maxi Bodega Supermarkets 10 Pali Discount El Salvador 9 Despensa Familiar Discount 3 Hiper Paiz Super La Despensa de Don Juan Supermarkets Guatemala ClubCo Warehouse clubs 88 Despensa Familiar Discount 6 Hiper Paiz Hypermarkets 8 Maxi Bodega Supermarkets 8 Supertiendas Paiz Supermarkets Honduras 9 Despensa Familiar Discount 1 Hiper Paiz Hypermarkets 5 Maxi Bodega Supermarkets 6 Supertiendas Paiz Supermarkets Japan 1 Foo:d magazine Supermarkets 9 The Mall Other turnover 9 Livin Hypermarkets 10 Seiyu super 74 Seiyu S.S.V. Supermarkets 4 Seiyu The Food Factory Supermarkets 79 Sunny Supermarkets Seiyu became a wholly-owned subsidiary of Wal-Mart in Wakana Fast food outlets Mexico 59 Bodega Aurrerá super MercaMás Discount 61 Suburbia Clothing 77 Sam s Club Warehouse clubs 60 Superama Supermarkets 31 Vips Restaurants 118 Wal-Mart Supercenter Hypermarkets Nicaragua 5 La Union Supermarkets Internationalisation of Food Retailing

77 Food 006 Non-food 006 Wal-Mart cont. 35 Pali Discount Puerto Rico 31 Amigo Super 9 Sam s Club Warehouse clubs 8 Wal-Mart United Kingdom 7 Asda 6 Wal-Mart Supercenter Discount super Hypermarkets super 16 Asda Supermarkets 1 George Clothing 3 1 Asda Essentials Discount 7 Asda Living Asda Wal-Mart Supercentre Discount super Hypermarkets USA 579 Sam s Club Warehouse clubs 1075 Wal-Mart Wal-Mart Neighborhood Market Wal-Mart Supercenter Discount super Super Hypermarkets Total Whole Foods Market of countries 3 Canada USA Total 186 Whole Foods Market United Kingdom 6 Fresh & Wild Whole Foods Market Super Organic food super Internationalisation of Food Retailing

78 Food 006 Non-food 006 Woolworths (AUS) 5, of countries 3 Australia 44 ALH & MGW Retail Liquor Outlets Liquor BIG W Variety 3 Dick Smith Electronics Dick Smith Electronics Power- House 149 BWS Liquor 63 Hotels Hotels Electronics Electronics super 63 Dan Murphy s Liquor 13 Tandy Electronics 4 Food For Less Supermarkets 505 Plus Petrol Forecourt 737 Woolworths Supermarkets 5 Woolworths Metro Supermarkets India 5 Croma New Zealand 57 Countdown Supermarkets Foodtown Supermarkets Dick Smith Electronics Electronics super Electronics 13 Fresh Choice Supermarkets 31 Super Value Supermarkets 65 Woolworths Supermarkets Woolworths Quickstop Forecourt Total Woolworths (RSA) Australia 55 Country Road Clothing Wholesale Clothing 16 Bahrain Woolworths Department 35 Botswana 13 Woolworths Department of countries Kenya 3 Woolworths Department 19 Lesotho Woolworths Department Internationalisation of Food Retailing

79 Woolworths (RSA) cont. Food 006 Non-food 006 Mauritius 1 Woolworths Department Mozambique 1 Woolworths Department Namibia 5 Woolworths Department New Zealand 6 Country Road Clothing 1 Wholesale Clothing Nigeria Woolworths Department Oman 3 Woolworths Department Qatar Woolworths Department South Africa 60 Food Stop 178 Woolworths Department 35 Food Stop Forecourt Swaziland Woolworths Department Tanzania 1 Woolworths Department Uganda Woolworths Department United Arab Emirates 4 Woolworths Department Zambia Woolworths Department Zimbabwe Woolworths Department Total X5 Retail Group Kazakhstan 30 Pyaterochka Supermarkets 778e Russia 19 Carousel Hypermarkets 1 10 Mini - Perekrestok 85 of countries 15 Perekrestok Supermarkets 3 1 Perekrestok super 1006 Pyaterochka Supermarkets Ukraine 4 Perekrestok Supermarkets Total Pyaterochka Supermarkets Internationalisation of Food Retailing

80 Food 006 Non-food 006 Yimpaş 695e of countries 3 Turkey 50 Yimpaş Hypermarkets 9 Yimpaş Proma Supermarkets Turkmenistan 1 Yimpaş Hypermarkets Uzbekistan 1 Yimpaş Hypermarkets Total 61 Internationalisation of Food Retailing

81 Methodology & acknowledgments General The research was carried out by Planet Retail in collaboration with CIES The Food Business Forum. The survey covers international food retailers. All sales and store figures refer to the end of 006 or the end of the fiscal year that falls mostly in calendar 006. Major developments and confirmed plans for 007/8 are included in the Updates column. This report aims to offer a comprehensive listing of international food retailers. However, the listing is not exhaustive because of the difficulty of tracking all international moves worldwide. In particular, some smaller retailers with cross-border operations may be absent from the report. Definition of international food retailers These are defined as retailers operating in more than one country that gain a significant proportion of their revenues (ie 0% or above) from food formats. The survey excludes food retailers operating in only one country and retailers operating exclusively or almost exclusively non-food formats. Department and drug are considered to be non-food formats. AS Watson is not included, for example, because most of its revenue comes from drug, although it also operates the food banner PARKnSHOP. Variety, although similar to department, are defined here as having a full grocery range, except where indicated non-food. Buying groups and distributors are not considered food retailers. SISA in Italy, for example, is considered to be a buying group and not included in the listing. Cash & carries and warehouse clubs, however, are counted as food retail operations. The foreign franchise operations of Baugur and Marks & Spencer have not been detailed since they are almost 100% non-food. Couche-Tard and Seven & I are listed under certain countries because of their ownership of the Circle K and 7-Eleven banners respectively. Worldwide banner groups such as SPAR and IGA are only listed where an international retailer holds the licence for a particular country. Note that Columbian retailer Exito has not been included because its major shareholder Casino is already included. Calculation of sales data Group net sales do not fully reflect revenue from that are franchises or relate to minority holdings. At the same time, net sales may include revenue from non-store operations such as financial services, which are not listed here. Although it is a retail activity, shopping centre development is considered a real-estate operation and not included here. Certain 006 net sales figures are estimates (marked e ) where the company did not provide a relevant figure. The percentages for food and foreign sales are based on retail banner sales, not sales. Planet Retail defines retail banner sales as combined sales for all banners, including franchises and independents and including sales tax. Net sales do not include sales tax and incorporate a proportion of revenue from minority holdings and franchises. The percentages of food and foreign sales for retail banner sales are nearly all estimates. Countries and territories For geographical reasons, certain overseas territories have been listed separately after the mainland country (e.g. France Réunion). However, these territories are not included in a retailer s total number of countries if the mainland country is already counted. An exception is Hong Kong, which is counted in addition to China in view of its economic importance. Store format definitions Planet Retail defines store formats listed in the survey as follows: Cash & Carry: membership-based wholesale format intended for resellers and commercial customers. In the food retail sector, the cash & carry format is usually a source for independent shop operators. Customers serve themselves as in a supermarket and pay for their merchandise at the checkout (unlike delivered wholesale, where merchandise is brought to the customer). In some countries, cash & carry outlets also sell to private consumers, e.g. in some Eastern European states. Store: small self-service food shop with particularly long opening hours and a noticeable focus on convenience items, such as ready meals and fast food. In addition, regular food items and a small choice of non-food products are sold. Often located at petrol stations (see definition of Forecourt Store) and targeting people who forgot to buy something at their main shopping place. Internationalisation of Food Retailing

82 Discount Store: efficiency-based food outlet selling a small number of items in vast quantities, often trading from roughly 1,000 square metres. Especially strong in Europe, where the concept originated (Germany). Exists in two different versions. Hard discount are almost exclusively own-brand based and completely price-driven, whereas soft discount feature wider ranges of both manufacturers' branded products and fresh food. Drugstore: supermarket-sized outlet specialising in body care items, toiletries, household cleaners and, sometimes, baby and pet food. In most countries, drug are also allowed to sell OTC drugs and integrate pharmacies. Forecourt Store: convenience outlet located at a petrol station. Occasionally operated in a joint venture between an oil company and a grocery retailer. Hypermarket: self-service store with a sales area of more than 5,000 square metres and generating high turnover, offering both a comprehensive food range and a wide choice of non-food items. Depending on the individual operation, the non-food offer can be as deep and wide as in a department store. Store: small food outlet selling from less than 400 square metres. Often, neighbourhood are similar to supermarkets, but there is also a non-self service version. Supermarket: self-service store with a grocery product offer, ranging from 400 to,500 square metres. Depending on individual store sizes, there are also non-food items available. Superstore: self-service store with a sales area between,500 and 5,000 square metres. As hypermarkets, super offer a comprehensive food range, but due to their smaller sales area their non-food offer is generally more limited than in a hypermarket. Variety Store: store concept similar to a department store but with a smaller number of product categories. Some retailers, notably Marks & Spencer, include food as one of the categories. Warehouse club: large-sized outlet selling both to business customers (wholesale) and end-consumers (retail) on a membership basis. Members are usually required to pay an annual fee in order to shop at the store. DIY is an abbreviation of do-it-yourself, which sell home-improvement products. Note that Planet Retail groups together formats (e.g. Super) where there is an overlap between store sizes in the same division, or if the company s figures are unclear. Every effort has been made to ensure that entries are complete. However, we welcome any additions or amendments to the survey. Please send any comments to r.lewis@ciesnet.com Design by DEV1 sarl 007 CIES The Food Business Forum. This survey may not be copied, reproduced or published in any format, in whole or in part, without prior written permission. Please send any requests to Richard Lewis, Sector Analyst at CIES: r.lewis@ciesnet.com Internationalisation of Food Retailing 007 8

83 What is CIES? is the only independent global food business network. It brings together the CEOs and senior management of around 400 retailer and manufacturer members of all sizes, across 150 countries. CIES retailer members alone generate over 1500 billion, employ 6.4 million people and operate close to 100,000. The manufacturer members account for 640 billion in sales. CIES has been growing with the food business for 55 years. It provides a real global platform for thought leadership, debate and networking between retailers and their partners. Its strength lies in the privileged access it offers to the key players in the sector and the sharing of best practice at the highest level. It has a mandate from its members to develop common positions on key strategic and practical issues affecting the food business. With its headquarters in Paris and its regional offices in Washington, D.C., and Singapore, Tokyo and Shanghai, CIES serves its members throughout the world. CIES Mission is: - to provide a platform for knowledge-exchange, thought-leadership and networking and - to facilitate the development of positions and tools on key strategic and practical issues affecting the food business. About Planet Retail Planet Retail is the leading online provider of global retail and foodservice industry information, from news and analysis to market research and digital media. Covering more than,000 retailers and foodservice companies in over 140 markets around the world, many of the world s leading companies turn to Planet Retail as their first source of business intelligence. Following the merger with M+M EUROdATA, Planet Retail has emerged as a brand trusted by more than 3,000 organisations worldwide, from large multinationals to expanding regional enterprises. By joining the latest in web technology with over 15 years of retail industry insight, we deliver immediate business value to our customers, who span the entire retail supply chain as well as financial services, consulting, advertising, academia, IT and entertainment. Planet Retail has offices in London, Frankfurt, Tokyo and Nairobi. For more information about Planet Retail, please contact: Michael Berggren Marketing Manager Tel: michael.berggren@planetretail.net CIES Products include international management programmes, newsletters and studies as well as tailor-made member services. Each programme is headed by a retailer-led committee or a task force whose role is to identify top-of-mind issues. Current programmes are The World Food Business Summit, Future Leaders, Marketing, IT, Supply Chain, & Food Safety & The Global Social Compliance Programme. For more about CIES, please contact: Marc VAN DER LIET Director, Marketing & Membership Services Tel: m.vanderliet@ciesnet.com Internationalisation of Food Retailing

84 CIES The World Retail Network / e-intelligence on global retailing /