The Corner Store with an Accent

Kiplinger Business Resource Center

"The British are coming, and U.S. retailers are none too thrilled. U.K. retail titan Tesco arrives stateside in November, opening the first of its planned 2,000 small Fresh & Easy grocery stores. The outlets, each covering about 10,000 square feet, will carry top quality prepared foods and other goods at Wal-Mart prices. Tesco's mammoth buying clout and super-efficient distribution system will help keep its costs down and its profits high.

The British chain has earmarked $2 billion so far to build these stores, which are roughly one-fifth the size of traditional supermarkets. "For years, the trend has been towards building bigger boxes and category killers [such as Bed, Bath & Beyond]. But now the tide is turning, with the emphasis on smaller format stores. Tesco is in the forefront," says Jim Hertel, a managing partner with Willard Bishop LLC., a retail consultancy." Read More