LONDON – United Kingdom retailer Tesco announced plans to launch grocery stores in the Los Angeles and Phoenix markets, reports the Financial Times.

According to the newspaper, real estate sources said Tesco is seeking 15,000 square-foot locations for its “Tesco Fresh & Easy” grocery stores, which is about the same size as a Trader Joe’s grocery store. The average grocery store in the United States is about 40,000 square feet.

“They're looking around, they're kicking the tires,” Bob Pearlstein at Phoenix-based CB Richard Ellis real estate told the newspaper, noting that Tesco was particularly interested in accessible corner locations.

Tesco posted job advertisements on a U.S. recruitment company Web site “for a range of executives,” noting that the retailer is “preparing to launch an unprecedented retail food business in the Los Angeles and Phoenix areas.” One job posting calls for a human resources executive to “develop and implement and administer the Tesco Fresh & Easy culture,” notes the newspaper.

Tesco announced plans in February to enter the U.S. convenience channel by opening stores similar to its Tesco Express format. The newspaper writes that the stores are set to open in 2007 and will feature fresh products, packaged foods and prepared meals.