Tesco aims for 100 U.S. stores by February

By Tim Gaynor

LAS VEGAS (Reuters) - Tesco Plc (TSCO.L: Quote, Profile, Research) said on Wednesday it hopes to have 100 "Fresh & Easy Neighbourhood Markets" in the United States by February of 2008.

The grocery stores, which will be smaller than traditional supermarkets, will focus on ready-to-eat meals and offer more fresh and environmentally friendly products than what is sold at mainstream U.S. grocery and convenience stores.

"We want to sell fresh, healthy foods," Tim Mason, chief executive of Fresh & Easy Neighbourhood Market, said at a press conference in Las Vegas, one of four U.S. cities where the stores will open this year. "It's not a beer and chips business."

All of the products sold at "Fresh & Easy" will be free of trans fats, artificial colours and artificial flavours, Mason said. The stores will not sell cigarettes or tobacco, but will offer beer and wine.

The much-anticipated launch of Tesco's "Fresh & Easy" markets in the United States has been shrouded in secrecy, with the company offering few details about the store formats or plans for the roll-out.

MAKING WAVES IN U.S. MARKET

The new chain is expected to make waves in the competitive U.S. grocery market, which is dominated by No. 1 retailer Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research).

The president of one local grocery chain, who will be competing head to head with Tesco in Las Vegas, turned out for the brand's launch at the Wynn hotel and casino on the city's well-known Strip.