Dec 03
Britain’s Tesco Plans US Stores Expansion
Dec 03, ‘07 — Tesco, the UK’s largest retailer, is planning to open a 1,000-strong chain of discount stores in the US, pitting it against rival retail giant Wal-Mart.
The supermarket has just opened 15 of its Fresh & Easy stores in Las Vegas, Los Angeles, San Diego and Phoenix. It aims to open a further 200 outlets by 2009 with plans in place to expand the network.
The US retail market is the world’s most competitive and has proved a tough nut to crack for many UK retailers.
The company is planning to open a second distribution centre in northern California. Like the first one, located near Los Angeles, the centre could serve up to 500 stores.
Fresh & Easy’s roll out in Las Vegas, Los Angeles, San Diego and Phoenix is being closely watched, with Tesco, the world’s third-largest retailer after Wal-Mart and Carrefour , bankrolling it to a tune of 250 million pounds ($516 million) per year over five years.
Tesco is targeting US grocers such as 7-Eleven and locally-run stores using a chain of convenience stores modelled on the Tesco Express blueprint. Fresh & Easy stores are 75% smaller than most American supermarkets.