Tesco US update

I've been following Tesco's plans with interest, and here are a few more tidbits.

First, from LA, we learn that Tesco is building a distribution center in the desert east of LA on the site of the old March air base -- convenient to LA, Phoenix, and Vegas, where the first store will be going up. They also report that the stores are anticipated to be in the 10,000-12,000 square foot range and will go for a somewhat upscale approach:

In America, Tesco plans to roll out a chain of convenience stores based on its Express format, a move that will have it go head-to-head with niche retailers such as Trader Joe’s — a gastronomic grocery chain that prides itself on its hip image — rather than Wal-Mart.

Tesco’s small-store format, Tesco Express, has proved a huge success not just in Britain, but around the world.

It was in 1994 that Tesco opened its first trial Express store in Barnes, southwest London. Originally developed on petrol forecourts, Tesco initially appeared to be unconvinced about the new format — a year later it had opened only two more trial outlets.

But today it has 830 in Britain, Thailand, Japan, Korea, Malaysia, Turkey and Ireland and is opening two Express stores a week in the UK alone.

From Phoenix, we hear that the name of the stores might be "Fresh & Easy", and that they are planning to open fifty stores in the first wave, with an eventual goal of 100 in the Valley of the Sun.

Tesco's Phoenix concept is to provide the convenience of a Circle K or 7-11 mini-mart, while offering fresh and prepared foods, such as those found at Trader Joe's, Whole Foods or Sprouts.