Tesco's controversial foray into US supermarketing may be going better than many critics suggest, after the boss of the American giant Wal-Mart admitted that he had been forced to sit up and take notice.

Tesco has committed £1billion to the launch of Fresh & Easy which has already opened 75 stores in the Unites States with plans for hundreds more.

But with British companies and especially UK retailers having a poor record in the US, doubters have been lining up to question the wisdom of the Tesco offensive.

Earlier this year Mike Dennis of the stockbroker Piper Jaffray reported there had been very weak footfall and that the project was doomed.

However, Fresh & Easy has now received a ringing endorsement from Lee Scott, the chief executive of Wal-Mart which in the UK owns Asda.

Speaking at a retail conference, Scott said that he had received mixed reports about Fresh & Easy's progress.

But, he added: "The thing that bothers me is Tesco is a very good retailer.

"I have a lot of faith that they will find their direction and it is something we need to pay attention to."

Wal-Mart has already moved against the advent of Fresh & Easy with the launch of a copycat outlet branded Marketside.

Doubts have arisen over the success of Fresh & Easy because Tesco has refused to offer detailed figures on its progress.