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THE supermarket giant Tesco is plotting to open a new store every two-and-a-half days in America.
Britain’s biggest retailer has pledged to have 50 stores open by the end of next February after making its American debut in four cities Los Angeles, Las Vegas, Phoenix and San Diego in November.
The company has 100 sites in the pipeline, including 30 in Phoenix and 14 in Las Vegas, in its £250m-a-year project, which is expected to break even by the end of the second full year.
Tim Mason, the Tesco executive leading the expansion plans for Fresh & Easy, its new neighbourhood store chain, said that he hoped to mimic the successful expansion of pharmacy chains such as Walgreens.
The stores will focus on selling fresh food. Tesco plans to improve quality by introducing date coding to fruit and vegetables.
Its own-label products will have no artificial colours, flavourings or trans-fats, the fatty acids that increase the risk of heart disease.
Analysts have high hopes for Tesco in America. They believe it could eventually have as many stores there as the 1,900 in the UK.
The retailer, which generates £7.6 billion in annual sales through operations in 12 countries, is to give a first-quarter trading update on June 19. Panmure Gordon forecasts like-for-like sales growth of about 6%.
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USA Supermarkers are clean, wonderful, the staff courteous, smiley, talkative and its a friendly atmosphere.
The owners and managers can be seen on the floor, you can talk to them, meet them and greet them, and its an "You want to see the bargains we've got for you this week deal."
Our clothings is better, mostly because of climate differences, but their food beats ours hands down. Their portion/s and canned goods are bigger and better. In the UK our can soup will just about do for 1.5 people, there soups will fill 3 plates. You have easy parking, coupons, college kids who pack for you, and special offers galore. As for B-R-E-A-D they invented it, meaning proper bread, not the wall -paper paste we get served. Take meat, we paid $1 dollar a lb. We still laugh at our kids saying "not meat again" . Turkeys, chickens, lamb, pork and beef in great big lumps - not side the trimmings British butchers serve. They cut their meat with an axe, over here we use razor blades. I luv ya USA.
ROB WILSON , LEEDS, ENGLAND
From what we've seen on dubious date coding of so called fresh produce in the UK I'd be very skeptical if I was an American shopper. It will be interesting to see how Tesco fare over the pond as the margins that US supermarkets work to over there are much less than the cartel like mark ups seen in Britain. I've yet to see a UK chain succeed over there or even Europe for the reason of meeting true competition and low mark up.
Mike, Denia, Spain
This is really excellent. Even the anti-globalisers (whatever the hell that means) shouls say so too.
I lived in the US in NY last year, and if you are unlucky enough to live in the city you are really optionless . There are some radically overpriced small food halls which are few but none the less quite appealling, or even smaller family concerns that are unsanitary to an astounding degree. Some of them even have those slidey pricing bars seen in the 60s in the UK, and the smells - well best not go into that.
Fresh produce and plently of it is a real need for the inner cities, if only to offer folk the option of not eating perpetual McCoronary fare.
Shocker, paris,
Thanks for bringing some "real" food to our neighborhood.
I tell you it is a shame that the only place to get some "Euro" quality is Trader Joe's [an ALDI company] in our Southwest corner of the country. Everything else is just hyped and completely artificial.
WILLIAM, AVONDALE, USA
Just shows what you can achieve when you start selling cheap tea off a borrow
Hugh Putt, Port of Spain , Trinidad
Having just moved back to the US from living in UK for 10 years, I say 'come on Tesco's and don't forget us on the East Coast' It would be wonderful to see products marketed that would suit British and many American tastes, i.e. less sugar and salt in their prepared foods! And really fresh looking vegetables instead of those which look as if they have spent days in transit. And digestives, and indian spices, and Horlick's, and some real grainary breads! We live near Orlando and certainly have enough people who visit from UK or have been to UK to support one store in the area.
Cheryl, Port St John, Florida, USA
To reply to the first comment, Americans DO know Tesco, I travel on business all over the US, and the retailers are worried, and their employees hopefull Tesco DO come over and take their companies over.
Their will be a place for Tesco as corporate America has no scruples, and (whatever we think) Tesco will be seen to be more responsible.
Americans love a business sucess story, even a British one.
Mike, Romsey, UK
Thank God for that. Maybe we can now get some clean,decent British food instead of the rubbish served up in some American chains. How about coming to Southwest Florida?
Ian D Beaumont, North Fort Myers, FLorida USA
I think it will do very well. American supermarkets are great but the fresh produce they sell is usually pretty awful. This has been lack of demand - due to mass agriculture and a thinly-spread population, American supermarket customers traditionally shopped monthly and got canned, frozen and prepackaged food. Fresh produce was grown at home, or covered with packaged sauces to disguise lack of flavour . But now Americans - particularly rich urban Americans - are responding to medical advice to eat fresh produce, simply prepared, in order to stave off obesity, diabetes and heart disease. Farmer's markets, wholefood supermarkets and speciality food shops are booming. The big American supermarkets are still haven't worked out how to adjust their supply chains for freshness and taste rather than keeping quality (you can see it in the sad state of much organic produce by the time it hits their shelves).
Delilah, Maryland, USA
Bring it on. At last a decent food store in the US that wil concntrate on fresh produce. Oh and dont forget Houston - oil and gas but plent of Brits looking for Tesco! Bring it On
Gerardin, Houston, TX, USA
From experience of living in the USA as well as the UK Tesco are on to a good thing as there is little competition in the field of quality products especially in the fresh fruit and veg line. If they introduce products at UK prices with UK quality and standards they are on to a winner.
Kenneth Broomfield, Miramar Beach, Florida
Well, Tesco bothering because they want the profits (of selling food to Americans) to go to their shareholders, not the competitor's shareholders. If there is no more room for them to expand in the UK market, they need to look elsewhere.
The supermarket business is saturated and competitive enough over here. Walmart (who own Asda in the UK) have the very low end of the market; local chains made the middle market. It will be interesting to see how Tesco position and distinguish themselves in the market place. The "Tesco" brand name doesn't mean anything to your average American.
MF, Sacramento, CA
dearsir/madam/i am sending you this e mail about tesco how they are goring to open shops in the us s a i bet they will not be saying a lot like they do in the uk you can see why these firms leave britain to open in other countrys i mean they are loosing a lot of jobs as well but people can not see this they dont think yours sincerly graham john gomersall freeman
graham john gomersall freeman, hull, yorkshire
How about one in Hong Kong. It would go down a storm.
Pierre , Lantau, Hong Kong
Tesco's announcement in February also shed light on what sort of food Fresh & Easy will sell. Its lineup won't include British food. Tesco USA CEO Tim Mason said Fresh & Easy will "reflect 21st-century American life."
Just what we need another store selling american crap.
There is a great demand here for something different but for some reason all the stores sell the same items. So at the end of the day what is the point of Tesco even bothering.
Gary French, Dallas, Texas
Having just returned from a decade in the UK I see this as a viable move.
Any firm that overpays execs or investors is at risk and we are hence witnessing
a second wave of megastores eg: the Home Depot problems.
Tesco seems to run a tight ship.
Just remember to stock root beer!
glenn schaefer, holbrook, ny usa