By George Anderson
The British chain Tesco is finally coming to the U.S.
The company announced it will finally make its long rumored entry into the American market with a convenience store start up on the West Coast. The first stores are expected to open in 2007.
According to a company press release, plans are to grow the business organically and pump the equivalent of $436 million a year into the operation. Stores will be modeled on Tesco's Express concept, which now has 800 stores in the U.K. and elsewhere.
Tesco expects the convenience store business to reach break-even by the second full year of operation.
Tesco's CEO, Sir Terry Leahy, said in a released statement, "This is a tremendously exciting move for Tesco which will add a new leg to our international expansion. 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.
"We've put a strong team together, led by Tim Mason (current marketing and property director for Tesco) and drawing on the wealth of skills and experience within the group," said Sir Terry.
Moderator's Comment: What is your reaction to the Tesco announcement it plans to enter the U.S. market with a chain of convenience stores? - George Anderson - Moderator