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BARCELONA, Spain -- Tesco PLC expects its new store format, which will be ready to rollout in the Western U.S. later this year, to "create new business" in the region and not merely steal from existing competitors, according to a report from Reuters.
Speaking to Reuters during the World Retail Congress here yesterday, Tesco c.e.o. Sir Terry Leahy said the chain's planned U.S. format will look completely different from existing stores in the U.S., and that his company has the needs of American consumers more in mind than the offerings of American competitors.
"We can't just go to the United States and do the same thing that is already done there," Leahy said. "If we do something new, that will create business."
Tesco has said it will open first in Southern California, Arizona and Nevada, but analysts expect it to roll out nationally within the year, tapping a new market for lower-cost, healthy fresh foods, particularly in inner cities.
"I think we can grow the market," Leahy was quoted as saying. "I don't think it's a case of taking business from existing competitors."