In the first phase, at least 20 stores of 10,000 sq ft (930 sq m) are planned in Greater Phoenix, Arizona, as well as openings in Las Vegas, San Diego and Los Angeles. The group is in the process of searching for further locations in Greater Phoenix.
The Tesco name and the trademark red, white and blue will be dropped in favour of the trading name Fresh and Easy Neighborhood Market and a green and white logo.
US chief executive Tim Mason (pictured) said the new stores were designed to 'draw customers back to their local neighbourhoods by offering high-quality, fresh and nutritious food at affordable prices'.
Fresh & Easy, headed by former UK marketing director Mason, is based in El Segundo, California. The operation employs 150 staff at present, with a further 2,500 jobs expected to be created this year.