LOS ANGELES -- Tesco has named Interpublic Group's Deutsch LA to handle the U.S. introduction of the company's Fresh & Easy Neighborhood Market stores, which are set to launch later this year, Mike Sheldon, Deutsch co-president, told Adweek. The domestic ad budget has not yet been determined, he said.
As has been widely reported, the U.K. retail behemoth plans to invest $500 million annually in its new U.S. stores with hopes of breaking even within the first two years of operation. The first stores in the U.S. will launch in cities such as Los Angeles, [image-nocss] San Diego, Las Vegas and Phoenix (click here), said Simon Uwins, Fresh & Easy's chief marketing officer.
Uwins said he has been in this country for two years, researching the market and studying ad agencies in preparation for the launch of domestic operations from El Segundo, Calif. We have no global branding strategy that we plan to execute, he told the ad industry publication. We believe that retail should be local.
The strategy for each store is developed from the ground up and should reflect what people want in specific localities, he added.
Greg Sage, international corporate affairs manager at Tesco, said Fresh & Easy would introduce a brand new format based roughly on the Tesco Express neighborhood convenience stores in England, but declined to elaborate. He expects the stores to be roughly 15,000 square feet. We develop local business tailored to local custom, he told Adweek. And we focus on building a local team.
Tesco spends $80 million annually on ads in the U.K., said the report.
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