Wal-Mart's takeover bid for Britain's third biggest supermarket group Asda shook the British retailing sector this week and has heightened concerns of a price war. Shares in Tesco, Sainsbury and Boots were all hit by fears that the giant US firm was preparing to flex its muscles and eat into its rival's profit margins. Analysts are divided on how aggressive WalMart will be but the move has firmly put the spotlight on British retailers.

Market sentiment may recover in the short-term pending further details about Wal-Mart's plans. Wal-Mart was ranked sixth in Fortune's most admired companies and is renowned for its service to consumers and its use of information technology to squeeze costs out of the supply chain and it poses a serious threat to the main British multiples.