Report: Tesco to be No. 2 Retailer by 2012

New York City Britain's Tesco PLC will overtake France's Carrefour SA to become the world's second-largest retailer by turnover behind U.S.-based Wal-Mart Stores Inc. by 2012, according to an industry report released on Tuesday.

The report, by international food-and-grocery expert IGD, forecasts Tesco to grow at an average of 11% between 2007 and 2012, compared with 7% growth for Carrefour.

IGD said that international expansion in markets such as China, the United States and India would contribute to Tesco's annual turnover reaching $157.1 billion by 2012, just pipping Carrefour with turnover of $157 billion by the same date.

The IGD report also showed that Wal-Mart would remain the clear front-runner in the global retail industry, with annual turnover expected to rise by around $100 billion to $476.2 billion in 2012.