A NEW BIG BOX GROCER TO ADD TO THE LIST

The largest British retailer, Tesco, is planning to open 100 stores on the west coast in 2007 as many of you have likely heard. Initially, it looked like Tesco would bring its Express convenience store format to California, but now it seems they plan to launch a much larger “Fresh & Easy” concept with close to 15,000 square feet and a parking lot for 70 cars. According to ACNielsen, the new format will attempt to define its own channel. Los Angeles and Phoenix will be the first markets targeted next year.

ACNielsen data shows that when converted to U.S. dollars, Tesco’s sales came in fourth after Wal-Mart, Home Depot and Kroger. Tesco’s profits and group sales are currently way up with a 17% and 11% increase this year as compared to 2005, with continuing momentum to grow. Their total store count is up 14% this year.