however, the electronic cards also give it a mass of information on its customers: when they shop, how often they return, what they buy regularly – and what other goods they purchase. “It’s been transformational in the

prospects for the company,” says Leahy. “Our aim is to earn our customers’ lifetime loyalty and our increasing investment in Clubcard is helping us to do that.” Now Tesco is rolling out the card overseas.

EMERGING MARKETS Leahy is confi dent of the worldwide economy, saying consumer sentiment is recovering. “I do not see any prospect of a double dip,” he says in his languid Liverpool accent. “Although China was affected by global recession, it was not affected as much and I see demand bouncing back. In China there’s all to play for. Tesco can emerge as one of the leading retailers. The same would be true of India, but it will take longer there.” Leahy already has almost 100 stores

in China and is rapidly adding more, building big retail centres with Tesco as the anchor. “Going from nil to 15

shopping centres a year is never going to be an easy process,” he admits. “In the north you can’t build during the winters and getting planning takes time. But there’s not been a standard of shopping like that before. We’re seeing good growth and it’s broad-based. That bodes well for a breakthrough into profi tability. “I think there’s more to come in that

part of the world. Tesco in Korea could be as large as Tesco in the UK.” But, despite expanding there, and into

countries such as Thailand and Poland, Leahy admits: “Tesco is never going to be in 100 countries like the fast-

KOREA THAILAND USA

TESCO’S INTERNATIONAL BUSINESS REPRESENTS 22 PER CENT OF THE GROUP’S TOTAL PROFIT

94M SQ FT OF SALES FLOOR SPACE

GROUP SALES AGAINST

£62.5BN

moving consumer goods business. The sheer resource intensity of getting to a market-leading position in one country limits the amount of countries you can get into, but each decade will add to the number. We can certainly have a very exciting future internationally, but it’s too early to say there’ll ever be a global retailing industry.” And it will not be Leahy’s future.

He retired in March 2011 from the group he helped build. Will he remain a close observer of Tesco’s fortunes? “I’ll remain a keen shopper and keen shareholder. I’m Tesco’s biggest fan,” he concludes.

e

CHINA

INDIA

POLAND