Tesco’s US venture, Fresh & Easy, is reportedly considering opening smaller stores as it seeks additional locations in California.

According to The Financial Times, commercial real estate agents in California said the retailer is considering locations in the crowded urban sprawl around Los Angeles for a convenience store-sized version of its outlets.

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A spokesperson for the retailer told just-food: “We remain flexible in our store footprint in order to open in all different types of neighbourhoods.”

The retailer recently announced plans to move into San Francisco as well as open ten stores in northern California early this year.

Tesco’s expansion in the US has been hampered by the recession in California, with the retailer having to “mothball” some stores in Arizona and Nevada last year.

However the retailer plans to be profitable in the country by 2012/13 when it reaches around 400 stores and its distribution centre reaches capacity.

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