The expansion is being spearheaded by the initiation of stores in San Diego, Las Vegas, and Los Angeles as well as in Phoenix. However, the stores opened have been placed under a new brand name: Fresh and Easy. TESCO plans on using this brand name widely in the US. Fresh and Easy stores are small to medium sized convenient stores. These stores are relatively different from TESCO’s stores in the UK. While TESCO has chosen to become UK’s Wal-Mart, the strategy in the US is relatively different with focus being directed to the provision of convenience and freshness of product. The Fresh and Easy stores, being of small size, allow TESCO to save expenses in its expansion and still make its presence known.
Traditionally, TESCO functions through five different kinds of store formats in the UK. However, TESCO has chosen to limit its store formats in the US to Express and Metro stores for the time being.
|Extra||60,000 + sq. ft.||Food and Non-Food items|
|Superstore||20-50,000 sp. Ft.||Food and some Non-Food Items|
|Metro||7-15,000 sq. ft.||Readymade meals|
|Express||3,000 sq. ft.||Produce, fresh baked foods and alcohol|
|Home plus||35-50,000 sq. ft.||Non-food products|
TABLE: Traditional TESCO Store Formats in the UK (Shaffer, Gottlieb, Zajfen, Vallianatos, Nyberg and Dreier 2007)
Tesco will be making use of a new brand name for the purpose of its expansion into the US. The Fresh and Easy brand name has been designed keeping in perspective the basic product that Tesco wishes to offer its consumers. While the brand name is designed to reflect a hygienic and highly convenient brand image, it can also be observed that it can be Tesco’s attempt to develop its reputation from scratch in the US. By doing so, Tesco will not have to make amends for any of its criticized measures in the UK (Wood 2007).
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