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LOS ANGELES -- Tesco gave Interpublic Group's Deutsch/LA the advertising responsibilities for the U.S. introduction of its Fresh & Easy Neighborhood Markets, which will launch later this year, Deutsch co-president Mike Sheldon told Adweek.
The domestic ad budget is undetermined and there was no review. Tesco spends $80 million each year on ads in the United Kingdom, the report stated.
Last September, Tesco announced it was venturing into the U.S. with a $500 million annual investment in new stores, and the hopes of breaking even two years after beginning operations there, the report stated. The first Fresh & Easy stores will launch in Los Angeles, San Diego, Las Vegas and Phoenix, Simon Uwins, Fresh & Easy chief marketing officer, told Adweek. Uwins has been in the U.S. for two years, researching the market and studying ad agencies to prepare for the launch.
"We have no global branding strategy that we plan to execute," Uwins said. "We believe that retail should be local." Each store's strategy will be developed from the ground up, and will reflect what consumers want in those specific locales, he said.
Greg Sage, international corporate affairs manager at Tesco, told Adweek Fresh & Easy would introduce "a brand new format" based roughly on the Tesco Express convenience stores in England. "We develop local business tailored to local custom," said Sage. "And we focus on building a local team."
Adweek and Convenience Store News are both operating units of Nielsen Business Media, a Nielsen Company.