Tesco: 'Wal-Mart's Worst Nightmare'

As Tesco takes on the U.S. market, American companies like Wal-Mart are taking noticeand adopting some of the British megaretailer's strategies
Shaun Curry/AFP/Getty Images

British retailer Tesco entered the U.S. market only last year but already it has managed to put Wal-Mart (WMT), the world's No. 1 retailer, on the defensive. Tesco (TSCO.L) fired the first salvo, in a battle that retailing analysts expect will intensify, by launching Fresh & Easy, a chain of 10,000-square-foot convenience stores, in cities across California, Nevada, and Arizona in November 2007. Eleven months later, Wal-Mart returned fire, taking on Tesco in Arizona with the debut of the similar-size Marketside, its first new store format in a decade.

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