Executive Briefings

Can Tesco Make It in the U.S.? History Is Not Favorable.

Coming to the United States is a big gamble, even for Tesco, which books $86bn a year in revenue. The company, the largest retailer in Britain and among the largest supermarket chains in the world, already has announced 122 planned store locations in Phoenix, Las Vegas, and Southern California. It has committed to invest $2bn over the next five years on the venture.
But before the first outlet is even open, local unions and community activists are pressuring the company to live up to its promises--including paying decent wages, minimizing environmental impact, and locating stores in underserved areas. Tesco also must stare down the ghosts of previous, failed attempts by British merchants to cross the pond. "The U.S. is regarded as a graveyard for British retailers," says Neil Saunders, director of Verdict Research, a London-based consultancy. "They've had to withdraw with egg on their faces."
Source: Business Week, http://businessweek.com

Coming to the United States is a big gamble, even for Tesco, which books $86bn a year in revenue. The company, the largest retailer in Britain and among the largest supermarket chains in the world, already has announced 122 planned store locations in Phoenix, Las Vegas, and Southern California. It has committed to invest $2bn over the next five years on the venture.
But before the first outlet is even open, local unions and community activists are pressuring the company to live up to its promises--including paying decent wages, minimizing environmental impact, and locating stores in underserved areas. Tesco also must stare down the ghosts of previous, failed attempts by British merchants to cross the pond. "The U.S. is regarded as a graveyard for British retailers," says Neil Saunders, director of Verdict Research, a London-based consultancy. "They've had to withdraw with egg on their faces."
Source: Business Week, http://businessweek.com