LONDON -- British supermarket retailer Tesco Plc is set to open an office in Chicago ahead of launching Fresh & Easy Neighborhood Markets there, as it seeks to expand its fledgling grocery/convenience store chain beyond the West Coast, according to a report by The Independent.
The world's third-largest retailer has a team of property executives who are poised to move to Chicago to identify potential locations for a distribution center and store location in and around the Midwest city, said the newspaper.
The revelation is the clearest indication yet that Tesco intends to gain [image-nocss] geographical spread in the United States beyond the 71 Fresh & Easy stores it has already opened in southern California, Arizona and Nevada, said the report.
This week, Tesco also revealed it is to open cash and carry stores in India, and supply products and services to Indian conglomerate Tata's hypermarket chain, Star Bazaar. This gives the company a presence in the three biggest retail markets: the United States, China and India.
Tesco has lined up Matthew Price, a real estate director at Fresh & Easy, to head its property acquisition team in Chicago, the paper reported. Dunnhumby, which operates Tesco's Clubcard, has an office in Chicago.
It is unclear, said the Independent, when Fresh & Easy will open in Chicago. A Tesco spokesperson told the paper, "At the moment, our focus is very much on the West Coast and opening stores there."
In February, CSP Daily News said Tesco was scouting sites for Fresh & Easy stores in the Chicago area, citing The Chicago Sun-Times. One potential site was reported to be in northwest suburban Arlington Heights, "knowledgeable sources" told the newspaper.
Though the Chicago area grocery market has become increasingly competitive with entries and expansions by Trader Joe's, Whole Foods, Aldi, Costco, Food 4 Less, Roundy's, Target and Wal-Mart, a Fresh & Easy store would be unique because of its strong offerings of prepared foods, packaged perishables and selections of produce, meat and bakery.
Tesco is investing $2 billion over five years in Fresh & Easy.
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