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| Tesco opens its first store in US | Tesco opens its first store in US |
| (20 minutes later) | |
| Tesco, the UK's largest retailer, has opened its first US store in the small city of Hemet, near Los Angeles. | Tesco, the UK's largest retailer, has opened its first US store in the small city of Hemet, near Los Angeles. |
| The retailer decided to go for a "soft launch" of the store at Hemet prior to opening a further five stores in southern California on Thursday. | The retailer decided to go for a "soft launch" of the store at Hemet prior to opening a further five stores in southern California on Thursday. |
| Tesco is using "Fresh & Easy" as the name for its US venture and will open more stores by the end of the year, | |
| "We need to have live customers in order to test the systems in the store," said a spokeswoman. | "We need to have live customers in order to test the systems in the store," said a spokeswoman. |
| "It is entirely logical to do this ahead of the grand opening on 8 November," she said | "It is entirely logical to do this ahead of the grand opening on 8 November," she said |
| Convenience stores | Convenience stores |
| Tesco chief executive Terry Leahy has said Fresh & Easy could one day rival the retailer's UK business. | Tesco chief executive Terry Leahy has said Fresh & Easy could one day rival the retailer's UK business. |
| The company plans to invest more than $250m (£120m) in its US business launch. | The company plans to invest more than $250m (£120m) in its US business launch. |
| "Tesco's entry could potentially go down as a genuine turning point in the industry, possibly comparable with Wal-Mart's decision to start opening Supercenters in the 1980s", James Anstead, Citigroup retail analyst, said in a recent note to investors. | "Tesco's entry could potentially go down as a genuine turning point in the industry, possibly comparable with Wal-Mart's decision to start opening Supercenters in the 1980s", James Anstead, Citigroup retail analyst, said in a recent note to investors. |
| Tesco is targeting US grocers such as 7-Eleven and locally-run stores using a chain of convenience stores modelled on the Tesco Express blueprint. | Tesco is targeting US grocers such as 7-Eleven and locally-run stores using a chain of convenience stores modelled on the Tesco Express blueprint. |
| Fresh & Easy stores are 75% smaller than most American supermarkets. | Fresh & Easy stores are 75% smaller than most American supermarkets. |
| High hopes | High hopes |
| The US market is notoriously tough for UK businesses. | The US market is notoriously tough for UK businesses. |
| Top retailers Sainsbury's and Marks & Spencer have failed to crack the tastes of the US consumer and both have withdrawn back across the Atlantic. | Top retailers Sainsbury's and Marks & Spencer have failed to crack the tastes of the US consumer and both have withdrawn back across the Atlantic. |
| Nevertheless, Credit Suisse forecast in a report this year that Tesco's US sales could reach $1bn within three years, and corner 2% to 6% of the local market share over five years. | Nevertheless, Credit Suisse forecast in a report this year that Tesco's US sales could reach $1bn within three years, and corner 2% to 6% of the local market share over five years. |