UK supermarket in £250m West Coast move
Tesco is planning to open convenience stores in the US next year, its first venture into the world's largest economy.

Its initial move will be the launch of a convenience format, starting on the West Coast next year.

The business will develop through organic growth, with initial planned capital expenditure of up to£250 million a year, which will be funded from existing resources. Breakeven is expected by the end of the second full year of operation. Tesco marketing and property director Tim Mason will move to the US to run the business.

Extensive consumer research was carried out to design the format for the US market and Tesco's highly successful and innovative Express concept provided the model. Tesco operates Express in five countries, with more than 800 stores.

Tesco's trades in 12 countries outside the UK, mainly in Asia and Central Europe. More than half of Tesco's selling space is now outside the UK.

Tesco chief executive Sir Terry Leahy said: 'This is a tremendously exciting move for Tesco, which will add a new leg to our international expansion. The US is the largest economy in the world, with strong forecast growth and a sophisticated retail market. It is a market we have researched extensively for many years and over the past year we have committed serious resources to developing a format that we believe will be really popular with US consumers.

'We've put a strong team together, led by Tim Mason and drawing on the wealth of skills and experience within the group.'

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