Tesco is set to expand its convenience empire, but this time into the US market.
The UK’s number one retailer is reported to be investing £250 million on the venture and claims it will break even after two years.
The first store will open on the west coast of the US and Sir Terry Leahy, chief executive, described it as a “tremendously exciting move”.
He said: "A strength of Tesco is that we don't just plant a format and hope that it works well. We think this will bring something new to the American market.”
Shares in the company were down 5.75 pence, or 1.76 per cent, at 321.25p in early trading on Thursday.
Tesco said the US grocery market is worth $600bn a year and is expected to expand by 40 per cent over the next five years.
A team has been scouting out the US market over the past year and the start-up will be led by Tim Mason, currently Tesco's marketing and property director.
The US stores will be based on the Express format.
The announcement comes a day after TNS revealed that Tesco's share of UK supermarket sales has risen to 30.6 per cent in the 12 weeks to January 29, up from 30.5 per cent in the previous quarter.
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