The retail week

Tesco boss Sir Terry Leahy has a reputation for being shrewd. If any demonstration were needed, take a look at his repeated denials that Tesco was making an acquisition in the US. He was telling the truth - Tesco is going it alone.

Few companies would have the balls to go into arguably the world's most developed retail market and take on some of the most aggressive and sophisticated retailers in the world.

But Tesco has earned the right to do so.

The company has shown it can enter overseas markets and prosper, and it has a management team that is experienced in international moves. The decision to post marketing director Tim Mason to the States shows how seriously Tesco is taking the expansion.

However, the 2 per cent fall in Tesco's share price yesterday shows this is not a plan without risks. To date, Tesco's international growth has been in developing retail markets, with few serious competitors. However, while it won't be competing with Wal-Mart head on in many places, there is nowhere in the US without strong grocers.

The US has been a graveyard for UK retailers down the years, but, in fairness, none of them arrived with the international experience of Tesco under their belt.

It will be fascinating to see what Tesco Express actually looks like in a US context. With the exception of a handful of the more pedestrian-friendly big cities, convenience shopping in the US is nothing like that of the UK. Town centre convenience is generally confined to drugstores. Food stores are almost always located on major roads on the edge of towns and the concept of the ready meal has yet to catch on like it has over here.

Most Americans are happy driving to a hypermarket and loading up the SUV with their groceries, so persuading them to buy supper at a Tesco Express sited in a gas station will take a change in mindset.

But Tesco does nothing without having done its homework, and the US move will be no exception. To paraphrase Ol' Blue Eyes, if they can make it there, they can make it anywhere -