Global supermarkets travel poorly. Tesco is the latest to retreat to its home market, following similar pull‑backs by Walmart and Carrefour. Because bargaining power with suppliers such as Nestlé and Unilever is negotiated country by country, a new entrant starts without the buying clout that underpins low prices at home — a fatal disadvantage in a scale‑driven business.

Past mis‑steps illustrate the problem: Tesco’s Fresh & Easy bet on small U.S. stores while Americans preferred bulk buying, and Carrefour tried to sell bulk goods to Japanese high‑rise tenants with tiny kitchens. Buying into a market works better than organic growth. Ahold Delhaize acquired U.S. chains in the 1990s and now generates almost two‑thirds of its sales there; Costco entered the UK via a joint venture with Littlewoods and now contributes 2 per cent of global sales.

The fragmented U.S. grocery market still offers opportunity, but expansion remains hit‑and‑miss. Walmart’s European push was derailed by UK planning rules, regulators blocking a Safeway takeover, and clashes with German unions. Loyalty schemes and retail‑media data help — Sainsbury’s expects £100mn in extra profit by 2027 — yet home‑market incumbents hold far richer customer insights. Technology sharpens rivals. Tesco’s retreat is sensible; global supermarket domination remains a very long shot.