British supermarket success story, Tesco, has announced that the first store in its much vaunted transatlantic venture will be in Phoenix, Arizona. SwelledHead reported in July of last year, in this post, about how the company would shape its offer for US consumers.
The failures of British retailers in the US market is well documented (and the subject of a future post as I have a suspicion that the UK doesn't fare well compared with its European rivals), so while expectations run high, history looms large. What's notable is that British supermarkets are generally a step ahead of those in the US, with a far more sophisticated offering in terms of prepared foods. How the US will take to "ready meals" is the great unknown, but Tesco's record of adapting to local tastes is good.
The challenge will be selling to on-the-go US customers, the notion of an easy to prepare meal at home in place of taking a trip to a restaurant. This works well in the UK, where restaurant dining is still less part of the culture than in the US (price and quality being key factors to varying degrees). Perhaps Tesco can trade on strong US family values and position the prepared food alternative as being more homely and caring.
