RETAIL WAR HEATS UP WITH DUELLING EXTRA CAMPAIGNS

A new chapter in Bangkok's retail war has opened with the two main players both erecting new store signs proclaiming "Extra".

New signs from the country’s two biggest hypermarket operators have begun appearing simultaneously in Bangkok this week as competition between Big C and Tesco Lotus intensifies. Tesco introduced its new look on Rama IV Road and Big C at the former Carrefour Lat Phrao outlet.

Ek-chai Distribution Centre, the local operator of Tesco Lotus hypermarkets, changed the sign at the Rama IV branch to read Tesco Lotus Extra on Tuesday evening, while arch-rival Big C Supercenter, the Thai unit of France's Groupe Casino, put up a Big C Extra sign at the former Carrefour Lat Phrao only hours earlier.

The hypermarket giants both adding the word 'extra' to their signs marks the second round in the battle between the UK-based Tesco Group and Casino, the French retailer that took over 42 Carrefour stores late last year.

Both hypermarket players plan to pioneer their Extra concept stores in Thailand.

WAL-MART LOOKS ABROAD FOR GROWTH

Photo Source: http://www.tmonews.com

Over the past several months,  Wal-Mart's (WMT) stock has not enjoyed the same momentum shared by many of its retail peers. Wal-Mart, which closed around $56 per share on January 21, is up 12.3% since the end of August. That performance pales in comparison to the S&P Retail Index's astonishing 27.1% jump during the same period. Sluggish U.S. results have certainly played a role in weighing down Wal-Mart's stock price, as a weakened basic-needs consumer, and increased competition from dollar stores, have led to six consecutive quarters of same-store sales declines and only nominal operating margin expansion. However, we believe Wal-Mart's domestic troubles may be distracting from what could be one of retailing's more significant international growth stories.

Although we anticipate U.S. issues will eventually be resolved through merchandise mix adjustments and new store formats, Wal-Mart's international operations will likely be the company's primary growth engine going forward. This segment represents approximately 25% of Wal-Mart's revenue, and 21% of its operating income, and we expect it to average nearly 9% revenue growth annually, and generate more than one third of overall revenue over the next decade, compared with just above inflationary growth domestically (combining Wal-Mart U.S. and Sam's Club). Additionally, these estimates could prove to be conservative, as Wal-Mart has established footholds in several rapidly developing economies across the globe.

CARREFOUR TRADES LOWER ON BRAZIL CONCERNS

PARIS -(Dow Jones)- Shares in French retail giant Carrefour SA (CA.FR) traded lower Friday on disappointment over the performance of the company's hypermarket stores in one of its fastest growing markets, Brazil.

"Brazil remains a sensitive subject, it's an emerging market with such strong potential that it's a problem to have disappointing results there," said Jean- Marie Lhome, analyst with Aurel.

Carrefour, the world's second largest retailer after U.S.-based Wal-Mart Stores Inc (WMT), Thursday doubled its estimates of charges in Brazil linked to tax litigation, inventory write-offs and other problems to EUR180 million, prompting it to slightly reduce its operating profit forecast for this year.