Financial Times FT.com

Safeway responds to Tesco challenge

By Jonathan Birchall in New York

Published: May 16 2008 20:47 | Last updated: May 16 2008 20:47

Tesco, the UK supermarket group, is eyeing a first direct response from a US competitor to the arrival in the US of its Fresh & Easy markets, with the opening this week by Safeway of a new similarly-sized small grocery store.

Von’s, Safeway’s subsidiary in southern California, this week opened a 15,000 sq ft store called The Market in Long Beach, on a site six miles from one of Tesco’s planned new 10,000 sq ft stores.

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