United Kingdom-based retailer Tesco PLC today unveiled plans to enter the U.S. market with the development of a new retail store format that will be launched on the West Coast in 2007.
Tesco, based in Hertfordshire, is one of the world's largest retailers with multiple retail formats that include hypermarkets, superstores, supermarkets and convenience stores. The 250 million pounds (approx U.S. $437 million) yearly investment to build the new U.S. retail chain.
New Competition for Wal-Mart?
Not at the outset, at least. Tesco plans to get a toe-hold in the U.S. with a new convenience store format modeled on its Express store format. The company did not provide details on other possible U.S. expansion plans. Although its strength is in food retailing, one of the companies four stated growth strategies is to become just as strong in non-food retailing.
The Tesco Group currently has 2,467 stores, employing more than 370,000 people in 13 countries, which include the United Kingdom, Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Malaysia, Taiwan, Japan, and China.
Tim Mason, currently Tesco's Marketing and Property Director, will move to the U.S. to run the new business while remaining on the PLC board.
"This is a tremendously exciting move for Tesco which will add a new leg to our international expansion," said Tesco Chief Executive Sir Terry Leahy. "The United States is the largest economy in the world with strong forecast growth and a sophisticated retail market. It is a market we have researched extensively for many years and over the last year we have committed serious resources to developing a format that we believe will be really popular with American consumers.
to Daily News