Blog: Tesco pushes ahead with San Francisco opening
Petah Marian | 23 June 2011
Tesco's Fresh & Easy US division opened its first store in San Francisco and announced a recruitment drive for its second store in the city yesterday (22 June) .
"Today as we celebrate the opening of Fresh & Easy's first grocery store in San Francisco, we are demonstrating once again the city's commitment to providing our residents access to fresh, wholesome food at affordable prices regardless of where they live," said San Francisco Mayor Ed Lee. "This new store along with the Bayview store scheduled to open in August will provide local jobs to our residents and it will have lasting local economic impacts in these communities and the city as a whole."
As the retailer pushes ahead with developing its estate in the US, industry watchers remain concerned about the the future of the operations.
For Tesco to achieve a profit, it needs to achieve scale. And as MF Global analyst Mike Dennis described back in May, opening up in Northern California is "like opening up a store in Scotland, when you've got a store in Havant in the south of England".
However, McMillanDoolittle retail consultant Neil Stern suggests that the move may give the retailer the opportunity to get the model right, which "might give it a better case to make to management to keep it going".
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