Tesco, the big British grocer, has a secretive $1b plan to open medium-format stores in the US, starting in the Southwest. I read something about it in The Economist a while ago (PR here), but just figured out that the distribution center, near the old March Air Force base, is going to support, among others, a store in my town of Redlands. They’re planning to rapidly build out medium format stores, positioned between Whole Foods and Ralph’s, say. There’s some question whether the format, which has been wildly successful in the UK, will work in the US, but Tesco has decided to go big quick and trust that their ability to rapidly respond to changing customer needs will serve them. Just in the same way that a British family will pick up dinner and groceries at the Tesco store near the train station on the way home, the new Tesco in Redlands is going to be on the route from our house to our kids’ school.
Redlands doesn’t have a Whole Foods, much to my chagrin (but good for my wallet), but it does have a successful Trader Joe’s and the usual large-format players: Ralph’s, Von’s, Albertson’s, Wal-Mart and Cosco. Interestingly, my neighborhood also has an 0ld-school family-owned medium-sized grocery, Gerrard’s, that would seem to be in the cross-hairs of Tesco’s plans. But maybe not.
This should be interesting.