Tesco is taking its Express c-store format Stateside and plans to open its first store there next year.
Following months of speculation over the multiple’s plans, it has announced that its stores on the West Coast would be modelled on the Express format but designed specifically for the American market. It plans to spend £250m on the venture and expects to break even after two years.
Some city analysts raised concerns about a US venture, which is seen as high risk. However, Verdict Research consulting director Neil Saunders said growing organically was less risky than a takeover. He added: “The convenience route is sensible as it will not directly compete with the likes of Wal-Mart.”
Following months of speculation over the multiple’s plans, it has announced that its stores on the West Coast would be modelled on the Express format but designed specifically for the American market. It plans to spend £250m on the venture and expects to break even after two years.
Some city analysts raised concerns about a US venture, which is seen as high risk. However, Verdict Research consulting director Neil Saunders said growing organically was less risky than a takeover. He added: “The convenience route is sensible as it will not directly compete with the likes of Wal-Mart.”
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