Tesco is thought to be eyeing Chicago for Fresh & Easy stores. The city is thousands of miles from its fledgling operation on the US West Coast, launched this month, indicating that Tesco plans to rapidly gain geographical spread in the US.

A US source told Retail Week that Tesco was “definitely” considering launching a distribution centre and Fresh & Easy stores in and around Chicago.

It is unlikely Tesco will launch beyond Los Angeles, Las Vegas, San Diego and Phoenix, which it had decided upon already, before the end of next year. However, its alleged interest in Chicago will send shockwaves through US retail.

A Tesco spokesman said: “We opened our first six stores in LA last week and five stores in Las Vegas this week. For the moment, we are focused on opening more Fresh & Easy stores in these cities, along with Phoenix and San Diego.” However, he declined to comment on the speculation surrounding Chicago.

The source said Tesco’s opening in Los Angeles had been a success and that reports of demonstrations by pressure groups outside stores had been exaggerated.

However, he suggested that Tesco would have to substantially change its food offer to meet the requirements of different ethic groups, such as Hispanic or Afro-American, which account for 60 per cent of the population in certain areas. Tesco declined to comment on the diversity of its food offer.

Tesco will spend£250 million a year establishing its US operation and plans to have 250 stores in the country by February.

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