It was observed that Tesco has chosen to relinquish its fame in the UK in its US expansion because of a number of reasons; the most fundamental of which is considered to be Tesco’s desire to leave behind any negative sentiments that it may have acquired in the UK. In addition, Tesco aims to target the American consumer who is becoming increasingly health conscious over time.
Tesco has chosen to make use of the fact that recent years have seen a considerable decline in the availability of fresh food to the American consumer in low-income regions. Los Angeles is only of such regions where the problem is steadily becoming increasingly prominent. The reason because of which this has occurred is because the last few decades have seen full service food markets shut down operations in low income inner city communities in an attempt to concentrate on regions where returns are higher.
As a result of this, fast food stores began to acquire momentum and people in such low income regions turned to liquor/convenience stores to satiate their hunger. However, this served to give room to low quality food; an excess of which causes damage to health. As difficult economic times continued to push price tags higher, consumers were forced to consume whatever was available from such establishments in order to save money and survive. This scenario gives way to a significant void in the American consumer market. There was a need for a convenience store that the American consumer could trust and look forward to in order to acquire healthy and fresh edibles.
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