Tesco, a major British retailer, has decided to open a chain of stores called "Fresh & Easy" here in the US. They have years of experience and large amounts of capital to invest, but unfortunately, that's not all that you need for success in an established market.
The amount of advertising they have done in putting their stores in place has been minimal and the knowledge of the store in their initial markets (California, Nevada, and Arizona) is also very low. They are similar to Trader Joe's, a specialty market popular especially in these areas, but with larger store sizes and a wider selection of goods.
However, this new entrant has not gone unnoticed, and Wal-Mart is ready to step in with a response. Wal-Mart announced its plans for a very similar type of store in these areas known as "Marketside." With Wal-Mart's phenomenally more developed distribution model and name recognition (at least in the US), who knows how long Tesco will be able to keep funding this unsteady venture before they decide to give up. Or, if they have more plans up their sleeves, what new, unique features will they be able to offer?
Times Online article
http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article2799403.ece
Forbes article
http://www.forbes.com/2008/01/14/tesco-walmart-arizona-markets-equity-cx_vr_0114markets19.html
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