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Tescos to open in the US
Topic Started: Feb 10 2007, 07:53 PM (138 Views)
iscreamer1
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Details emerge about Tesco's Valley stores
Erica Sagon
The Arizona Republic
Feb. 7, 2007 01:57 PM

British supermarket giant Tesco has picked spots for its first 20 stores in the Valley that will cater to time-pressed and health-conscious consumers.

The mini-supermarkets, dubbed Fresh & Easy Neighborhood Market, will begin to open late this year in Phoenix and other Western cities, and will compete with traditional grocery stores in a big way.

Until now, Britain's largest retailer has been tight-lipped about its entrance into the U.S., where it will first put stores in Phoenix, Los Angeles, San Diego and Las Vegas. advertisement




But on Wednesday morning in downtown Phoenix, Tesco USA CEO Tim Mason officially announced the Fresh & Easy name and revealed more details about its launch to Valley officials and business leaders. Mason said he isn't sure where in the West the first Fresh & Easy will open.

The chain's emphasis will be on fresh produce and healthy, ready-to-eat meals sold for affordable prices, Mason said. It will stock common American brands and Tesco's private label products, plus beer and wine, but not British food.

"It is not a funny specialty store that sells imported things that a few Brits have a hankering for," Mason said. "It is very deliberately designed to meet the needs of the 21st-century American consumer."

Those needs don't include smoking in Tesco's eyes: the stores won't sell cigarettes or tobacco products.

"We're going to encourage a healthy lifestyle," Mason said, adding that Tesco's private brand products won't contain added trans fats, artificial colors or flavors.

Mason said Tesco is scouting for even more sites in the Valley and that a total of 30 stores could be open by the end of next year.

Tesco plans to have 100 stores open in Phoenix and other Western cities by the end of 2008, and will spend $450 million each year for the next few years on the launch, Mason said.

Although the stores will compete with traditional supermarkets, they will be "intentionally smaller" to appeal to time-pressed shoppers, especially those who are their way home from work.

Fresh & Easy sales floors will be about 10,000 square feet, or about the size of a Trader Joe's grocery stores.

As traditional supermarkets supersize their stores, Tesco hopes to win over U.S. consumers by downsizing. Mason said the idea is to get shoppers in and out of Fresh & Easy stores quickly.

Mason declined to say how many products a typical store will carry.

"Clearly, by virtue of its size, the range will be limited," Mason said. "But it is absolutely the intention that you would be able to (buy what is needed to) run your household on the food and grocery side."

Fresh & Easy stores will dot the Valley from El Mirage to Apache Junction, hoping to carve a niche in the Valley's already competitive supermarket scene. Some stores will open in existing buildings and others will be built from the ground up.

Mason said Phoenix is included in U.S. launch plans because of the area's growth potential.

"You're consistently one of the fastest growing places in the country," Mason said. "We are very keen to be part of your success story."

Tesco, which runs more than 2,800 stores in 12 countries, has set up its U.S. headquarters in El Segundo, Calif., and is building a distribution center in Riverside, Calif.

It won't immediately build a distribution center in the Phoenix area but it could in the future, Mason said.

In the Valley, Tesco will hire hundreds of workers and will recruit locally. It has already hired 150 employees at its headquarters and expects to create 2,500 jobs when stores start to open this year.



I wish they were selling British foods but it should be pretty cool.
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scottycatt
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Thanks, Irene. I hadn't heard about this. I, too, am disappointed that they won't be carrying British food or specialty items. I think those items might have been a real drawing card.

I welcome any new stores that choose to carry fast and healthy foods. :)




Why?
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Deleted User
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Oh good, maybe Andy will feel more at home in San Diego now. ^_^ Though I wish they'd bring Marks & Spencer's over, if anything! Of course we could always use more healthy food. Anyway, it's about time we had another British invasion in the states so they can get back at us for all the Starbucks' and McDonalds'. :P
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I enjoyed the Tescos, were an interesting store.
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Beatlesluver
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There are loads of Wallmarts in the UK as they bought ASDA.
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Sandra

I wouldn't mind collecting some clubcard points in Phoenix. :D
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bluemeanie
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Sandra
Feb 10 2007, 09:45 PM
I wouldn't mind collecting some clubcard points in Phoenix. :D

wonder if we will be able to do that sandra lol :P
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Beatle_Dom
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He Won An Award.....
so basically its Tesco but Americanized? what is the point? Tesco should put bloody British food in the stores! since they are a British company opening up in America! i know loads of Americans (and i'm sure there are a few on here) that love British Delicasies and would love to just pop down to Tesco (sorry...'Fresh & Easy' and that does not sound right) and get them.

Asda already sells a limited amount of American delicasies (Hershey's is now quite prominent on the shelves when it never was before) so why wont "Fresh & Easy" sell any British food?
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BlueMolly2009
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Wouldn't cost more to have British things in a store like Tesco's? I mean the import fee (or whatever)? I think it's stupid that they can't have British foods either, but they probably think us Americans aren't interested, which is a bunch of Twiglets. :lol:
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iscreamer1
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The article did say they would carry Tesco brand items so I wonder that they will be.
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JeffLynnesBeard
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Tesco's is probably my least favourite popular supermarket in this country - their own brand products aren't the greatest, but they're reasonably priced. Hopefully they'll offer American shoppers good value. :)
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