Wednesday, September 06, 2006

UNEXPLAINED VISTOR? MAY BE TESCO

What’s it like to be the average American? Other than consuming ungodly amounts of fast-food, watching nightly network television and shopping at The Gap, you’ve got me beat. According to the London’s Sunday Times, the new UK supermarket chain Tesco went to great lengths, however, to learn about the “American Dream.” Before deciding to open c-stores in the U.S., 50 senior directors from Tesco quietly lived in various U.S. homes to learn how Americans eat and shop. The households the directors lived in were chosen by focus groups. Tesco also reportedly built a full scale dummy store in a Santa Monica warehouse to test with over 200 focus groups. These guys mean business and sneaky too.

The director’s real identities and purpose for their visit was kept secret so they may better observe the families, who were recruited by a market research firm to host the visitors for a month. The Tesco reps reportedly recorded their hosts’ daily eating habits, shopping routines, and recreation and entertainment activities.

The largest UK retailer, Tesco, is planning to open 100 stores on the west coast in 2007 as many of you are probably familiar. 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 averaging 10,000 to 12,000 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.