BBC: Tesco, the UK's largest retailer, is planning to open a 1,000-strong chain of discount stores in the US, pitting it against rival retail giant Wal-Mart.
The supermarket has just opened 15 of its Fresh & Easy stores in Las Vegas, Los Angeles, San Diego and Phoenix.
It aims to open a further 200 outlets by 2009 with plans in place to expand the network.
The US retail market is the world's most competitive and has proved a tough nut to crack for many UK retailers.
Ready meals
The company is planning to open a second distribution centre in northern California.
Like the first one, located near Los Angeles, the centre could serve up to 500 stores.
"We want the stores to be no more than two miles apart so no one has to travel more than a mile to get to a Fresh & Easy," said Fresh & Easy Chief Executive Tim Mason. Tesco plans US stores expansion >>>
Mark Alexander