Tesco is plotting a first major advertising campaign to support its US business, Fresh & Easy.
The campaign will target cash-conscious shoppers in California, Nevada and Arizona, according to the Financial Times, prompting speculation that the retail giant is gearing up for another round of expansion in the US.
Tesco currently operates around 125 stores under the Fresh & Easy fascia, but is expected to unveil losses in the US of up to £80m for the past six months.
The supermarket is tipped to lag behind its major rivals and report second-quarter like-for-like growth of around 3.5% in tomorrow's trading update.
Meanwhile, Waitrose has pulled its advertising from Fox News in the wake of controversial comments about President Barack Obama made by right-wing presenter Glenn Beck.
The supermarket joins Wal-Mart and a host of other companies in withdrawing its advertising from the channel, which is broadcast in the UK on Sky, after a spate of complaints from consumers.