05 Feb 2008


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Tesco Fresh & Easy will challenge Kroger

Tesco

Fresh and Easy

Kroger

Wal-Mart

Nielsen

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Will Tesco make it in the US? 05 Feb 2008

Source : Nielsen
Tesco's Fresh & Easy chain will threaten Kroger more than other US retailers, a new study by Nielsen has revealed.

The research company's latest Consumer Insight report – Retail Riot – Tesco has arrived in the US: a competitive retailer review – says Kroger stands to lose $6.7m a week to its new rival.

The findings are based on an analysis of the grocery stores near planned Tesco locations in the Los Angeles, Southern California, Phoenix and Las Vegas markets.

But other chains are vulnerable too, says the report.

SuperValu, Safeway, Bashas and Wal-Mart are also represented in those four markets. Nielsen estimates their potential weekly losses at $4.4m, $4.0m, $2.4m and $1.5m.

How close US rivals' stores are to Tesco's Fresh & Easy branches will also impact trade, says Nielsen.

In Arizona, California and Nevada, for example, Kroger has the highest number of stores within a five-mile radius of Tesco locations, followed by Wal-Mart.

The study also shows Tesco has chosen its sites very well. Stores closest to Fresh & Easy locations have been recording the biggest year-on-year sales growth across key categories including alcohol and tobacco, personal and home care, produce, grocery, frozen and chilled, bakery and deli, and meat and seafood.

By Fiona Briggs

Fresh & Easy: challenging Kroger

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