Tesco takes on the west coast of America

Supermarket chain, Tesco is to take on other supermarket giants such as Wal-Mart as it opens its first US store under its new green and white Fresh & Easy banner.

The supermarket giant opened the first Fresh & Easy Neighbourhood Market in the city of Hemet which is about 75 miles east of Los Angeles.

Tesco is already the biggest player in the British grocery market with a 30% share and plans to have at least 50 Fresh & Easy stores in the US by the end of the financial year, stating that its offer of a pension, healthcare and a good wage will entice experienced supermarket staff away from its competitors. The group said it will invest a minimum of $250 million a year in its initial move into the US.

Tesco’s Fresh & Easy stores are about a quarter of the size of the traditional US supermarket. It is attempting to build on the success in the UK and Europe of its Tesco Express local stores. The store includes a kitchen table where an employee warms up samples of prepared foods such as curries and pizza. Furthermore, customers have to scan their own purchases at the check-out registers with staff available to help.

Over half of the products are being sold under Fresh & Easy’s own label, from products such as butter and sugar to wild blueberry muffin mix and udon noodle salad. Tesco is also taking an aggressive approach to pricing of essentials such as eggs and milk.

The Fresh & Easy store in Hemet has created a lot of attention from locals with people saying they are impressed by the new store.

Tesco’s chief executive, Sir Terry Leahy, and members of Tesco’s board are due to attend a party on Wednesday evening where they hope to meet with Arnold Schwarzenegger, the governor of California. However, the event is also expected to draw protesters from the UFCW grocery workers union.

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