Tesco is looking to expand its Fresh & Easy business into San Francisco and northern California, the UK retail giant said today (3 December).

The company has opened 15 Fresh & Easy outlets in Las Vegas, San Diego, Phoenix and Los Angeles and is aiming to have 200 outlets in the US by 2009.

Tesco told just-food that it is looking at sites for new stores in San Francisco and Northern California and said it would build a second distribution centre.

"Due to the positive feedback that Fresh & Easy has received among its customers and that expansion, Fresh & Easy will require a new distribution centre," the company said.

However, Tesco said reports that it wants to build a 1,000-strong Fresh & Easy chain were "incorrect".