Tesco’s US store chain – Fresh & Easy – is likely to be among the top 10 supermarkets in America by 2015 with sales estimated at $10bn (£5bn), according to a report from research unit TNS Retail Forward.
The Fresh & Easy stores aim to fill a gap in the US’ convenience store market with small stores, easy access, ready meals and ‘grab-and-go’ items. By 2011, TNS Retail Forward estimates that Tesco could be a $4bn (£2bn) retailer in the United States with 500 stores.
TNS Retail Forward believes Fresh & Easy’s small-size advantage gives it the opportunity to almost double space productivity per square foot compared with supermarket industry averages. The average size of a US supermarket is more than three times the size of Fresh & Easy’s 10,000 sq. ft. stores. TNS Retail Forward predicts that Fresh & Easy could generate sales of $900 (£450) per square foot per store, nearly twice the supermarket average.
“The combination of Fresh & Easy’s smaller stores, self service tills and ready-to-cook meals has direct appeal among U.S. shoppers whose primary concern is convenience,” said Jennifer Halterman, senior consultant at TNS Retail Forward. “There is demand for this type of concept, and we expect other US retailers to be watching Tesco closely for ideas on how to tap into this buoyant market. Fresh & Easy’s smaller store size gives it an ideal formula to replicate quickly throughout the United States.”
Interesting….what do you think? Can Tesco triumph in the States?
November 29, 2007 at 3:59 pm |
[...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerptCould Tesco have a £5bn US business by 2015? November 29, 2007 by brandstrategy Tesco’s US store chain – Fresh & Easy – is likely to be among the top 10 supermarkets in America by 2015 with sales estimated at $10bn (£5bn), according to a report from research unit TNS Retail Forward. The Fresh & Easy stores aim to fill a gap in the US’ convenience store market with small stores, easy access, ready meals and ‘grab-and-go’ items. By 2011, TNS Retail Forward estimates that Tesco could be [...]
November 29, 2007 at 4:20 pm |
[...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerptCould Tesco have a £5bn US business by 2015? November 29, 2007 by brandstrategy Tesco’s US store chain – Fresh & Easy – is likely to be among the top 10 supermarkets in America by 2015 with sales estimated at $10bn (£5bn), according to a report from research unit TNS Retail Forward. The Fresh & Easy stores aim to fill a gap in the US’ convenience store market with small stores, easy access, ready meals and ‘grab-and-go’ items. By 2011, TNS Retail Forward estimates that Tesco could be [...]