Tesco 'gambling on Las Vegas launch'

Tesco appeared to have Las Vegas in its sights today after a newspaper report detailed further potential expansion by the chain in the United States.

The retail giant has already revealed plans to open mini-supermarkets along the West Coast.

But the Financial Times said commercial real estate brokers had disclosed that Tesco is also looking for sites in Las Vegas for its planned Tesco Fresh & Easy outlets.

It has also registered its two US subsidiaries – Tesco Stores West and Tesco Stores Holdings – in the city’s home state of Nevada, as well as in California and Arizona, the FT added.

In Arizona, Tesco was so keen to keep its arrival quiet that it placed newspaper advertisements announcing that a company called Buttoncable West was about to start a retail sales business in state. A few weeks later the name changed to Tesco Stores West, today’s report said.

Tesco announced its first steps into the United States in February when it unveiled plans for the £250m (€371m) a year roll-out of its Express store format along the West Coast. It did not detail exact locations, but the move was thought to focus on Los Angeles and California.

A Tesco spokesman declined to comment on the details of the company’s US strategy today.

He added: “We are getting on with building the business for launch next year.”

The new venture will be designed for the American market and is modelled on the company’s Express format, which now operates in five countries with more than 800 stores serving around eight million customers a week.

In April, the company posted a 17% rise in annual profits to £2.21 billion, after it banked sales of £41.8bn (€62bn) from its worldwide operations.

Tesco operates in 13 countries, including China, Turkey and Japan. It is expected to become Britain's biggest non-food retailer by the end of the year, overtaking Argos Retail Group, which owns Argos and Homebase.