Wal-Mart yesterday said it would pursue a "passion for fresh and delicious food" and "the highest level of customer service" in new small grocery stores that will be competing head-on with Tesco's fledgling Fresh & Easy US stores.

The largest US retailer - best-known for sprawling superstores with minimal service levels - says that its planned Marketside neighbourhood stores will be "dedicated to helping our customer answer the question 'What's for dinner?'."