Tesco Announces Plans For Major American Expansion

Wed, 18 Apr 2007
 
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Tesco has announced plans to open up a ‘significant amount of stores by the end of the year and are in the process of recruiting floor staff to work in its United States supermarkets.

Investors were updated on Tesco’s ambitious plans by chief Sir Terry Leahy as the retailer announced record pre-tax profits of £2.6 billion, while also unveiling plans to increase its share buyback programme by £1.5 billion.

Sir Terry said, "We have a strong team in place. We have made good progress in obtaining retail space. We have one of the most successful, if not the most successful, approaches to international retailing. The offer is local. Designed by local teams for local customers."

Last year saw Tesco invest £89 million setting up their US business with a further £250 million this year going into its American expansion.

A Tesco spokesman told investors, "We expect to be able to open a significant number at launch across the LA, Phoenix, Las Vegas and San Diego markets."

Tesco’s sales increased by 10.9 per cent to £46.6 billion in the year up to February 24, while group profit increased 20.3 per cent to £2.6 billion.

Despite increased competition from its UK rivals Asda and Sainsbury’s the company’s UK sales grew by 9 per cent.

Sir Terry added that there has been a strong demand for premium and organic lines. "The growth is remarkable. We are seeing a fundamental change in buying habits. This is not just about affluent customers," he said.

Non-food sales increased by 11 per cent thanks to the launch of its non-food catalogue Tesco Direct .

Tesco also announced its international sales had risen by 17.4 per cent over the year, with strong performances across almost all markets in Asia and Europe .

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