|October 25, 2011||Posted by admin under Supermarket Tesco|
The great British chain, Tesco, is likely to be the next British invasion (as the arrival of Beatles in the 1960s was called). Yes, the company is extending its operations in the United States, and it may even make such American giants as the great Wal-Mart a bit nervous in the process.
The latest British invasion had its commencement in 2007 when Fresh & Easy supermarkets suddenly came to be located in California and Nevada and Arizona. Soon Wal-Mart took notice and opened some smaller stores selling fresh foods in Arizona. Whatever these two giants may be up to is bound to benefit shoppers in the United States. When companies begin to compete for customers, the customers end up paying less in one or the other of the stores.
Speaking of Hollywood, there is now a Fresh & Easy Neighborhood Market just a bit away from the famous Grauman’s Chinese Theater where such great Hollywood legends as Judy Garland and George Clooney have their footprints in concrete. Fresh & Easy – a subsidiary of Tesco Supermarkets – is hoping to have lots of stores in the United States, perhaps as many as Safeway in times to come.
Fresh & Easy offer a lot of quality foods for less than most supermarkets of similar size. In fact, Fresh & Easy stores are more like Trader Joe’s, and they also offer a lot of organic and whole food items as well. Some people report that what Fresh & Easy sells is about 30% cheaper than the same items you can find in most other supermarkets in the United States. This gives these stores a great advantage when it comes to gaining more and more customers.
What’s different about the Tesco stores that are going to be more and more in the United States is that they are – in addition to being cheaper – also less in the business of offering packaged goods and more in the way of offering fresh foods – as the name Fresh & Easy itself implies. In other words, these stores are going to bring something new to the American market, a whole new emphasis on what people are likely to buy and appreciate more. Less packaged foods means less processed foods – which means more whole foods, which are the foods that most nutritionists recommend and have been recommending for quite a while by now.
Tesco is a giant in the U.K. It holds more than 30% of the supermarket share, so they’re coming to the United States is something that the great American chains will have to reckon with. Not just Wal-Mart, but also such other giants as Kroger, Safeway, and 7-Eleven.
One of the windfall benefits from this kind of completion is less money being spent by most citizens on their groceries. When companies have to compete with one another, they do this on one basic ground: lowering prices. Lower prices bring in the customers. The profits may be less, but the volume may be larger. And so the difference can be made up in good time.
Tesco in the United States in the form of Fresh & Easy Neighborhood Markets is going to be a new way to get your groceries. If you happen to live somewhere near one of these British stores, you might as well try it out and see what you think of the latest British invasion.