Tesco’s coming to town

Marketplace Staff Jan 31, 2007
HTML EMBED:
COPY

Tesco’s coming to town

Marketplace Staff Jan 31, 2007
HTML EMBED:
COPY

TEXT OF STORY

MARK AUSTIN THOMAS: The world’s fifth-largest retailer is stepping onto the world stage. British company Tesco has just opened for business in Beijing with plans to open 10 more stores per year in China. And later this year the company plans to launch a store in Southern California. It will be Tesco’s first entry into the U.S. market. The American stores will be called Fresh and Easy. Marketplace’s Jeff Tyler has more.


JEFF TYLER: It may be the biggest retailer in Britain, but Tesco doesn’t get much name recognition in this country.

Nonetheless, the company rivals Wal-Mart in terms of global ambition. And as Morningstar equity analyst Mitch Corwin notes . . .

MITCH CORWIN: You can’t be a global player without being in this country.

Tesco’s first foray into U.S. business, he says, is a different approach from Wal-Mart’s.

CORWIN: They’re looking to build smaller stores. You know, they’re not building the big super-centers. They’re building more of like the size of a Trader Joe’s.

Despite tough competition, Tesco’s American brand Fresh and Easy hopes to distinguish itself by merging grocery-store services with the speed of a convenience store.

The move has the endorsement of investment icon Warren Buffett. In the last year, his company, Berkshire Hathaway, has gobbled up almost $1.5 billion in Tesco stock.

I’m Jeff Tyler for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.