US: Tesco reveals plans for US entry
UK supermarket operator Tesco confirmed that it will enter the US market under the 'Fresh & Easy Neighbourhood Market' banner when it revealed its new logo at an event hosted by the Greater Phoenix Economic Council yesterday (7 February).
The company is initially focusing on the Greater Phoenix, Las Vegas, Los Angeles and San Diego areas, with its first stores due to open in Phoenix later this year. Tesco said that it will launch in Greater Phoenix, where it has already secured 20 locations and is continuing to research more sites.
Tesco has targeted the Greater Phoenix area because of its rapid population growth and the potential offered by the expanding market.
While Tesco is not releasing details of the number of outlets it will be opening, a spokesperson for the retailer told just-food that it intends to swiftly penetrate the market. "We can't reveal the number of stores we initially plan to open, but we need to rapidly expand over there," the company said.
The neighbourhood markets will be roughly 10,000 square feet in size, smaller than a regular supermarket. The stores will emphasise convenience, offering fresh quality goods at affordable prices, Fresh & Easy CEO Tim Mason said. "The Fresh & Easy Neighbourhood Market format is designed to draw customers back to their local neighbourhoods by offering high quality, fresh and nutritious food at affordable prices," he commented.
The concept was developed following extensive consumer research in the US and has taken lessons from the Tesco Express format, which operates in seven different national markets.
The company, which already employs 150 people at its HQ in El Segundo, California, said it expects to create more than 2,500 jobs in the area. "We are passionate about being a good neighbour and a good employer," said Mason. "We will recruit locally and play an active role in the neighbourhoods where our stores are located."
Tesco said it is committed to adopting environmentally friendly practices in its stores, where it will minimise waste by recycling or reusing all shipping materials and energy consumption will be reduced with modified fridges and lighting.
The UK's largest retailer has been hesitant to provide further details of the launch, suggesting that it wants American consumers to be the first to know its plans. "We aren't disclosing an exact launch date, but it will be in the second half of the year," a spokesperson for the company told just-food today.
Russian retailer Dixy is in talks with local gaming group Ritzio over the possibility of building convenience stores in the country....
Tesco has named a former Vodaphone executive as UK marketing director....
UK police have charged a man in connection with the recent series of bomb threats at Tesco stores in the country....
UK supermarket sales are being affected by a consumer slowdown, according to the latest data from market analysts TNS Worldpanel....
UK confectionery and snacks group Zetar is looking to secure another domestic acquisition in the next year and will then cast its eyes on Europe, its chief executive said today (24 July)....
US convenience food group Basic American Foods has bought Oregon-based Harry's Fresh Foods for an undisclosed sum....
UK retail giant Tesco has unveiled plans to open Fresh & Easy Neighborhood Market throughout the Los Angeles area. Tim Mason, who heads Tesco's US venture, said the retailer would open stores "from Ho...
The chief of Canadian convenience store group Alimentation Couche-Tard has said he is "satisfied" with the company's performance, despite posting flat profits over the last 12 months....
- Analysis: Is Heinz, Kraft merger "a growth story"?
- McDonald's antibiotics move may be seminal moment
- M&A Watch: Who could be on 3G Capital's radar?
- Viewpoint: Faber-led Danone gets realistic
- Green Giant talk underlines pressure at Gen Mills
- UPDATE: Heinz, Kraft strike merger agreement
- Kraft "in buyout talks" with Heinz owner 3G
- Fatal explosion at French desserts firm Senagral
- Heinz to cut 71 jobs at UK plant
- Infographic: Heinz, Kraft unveil combined business