Tesco, Leaving U.S. Market, to Sell or Close 199 Fresh & Easy Stores
U.K.-based Tesco PLC is likely to sell or shut down its 199 Fresh & Easy grocery stores, exiting the U.S. market after five years of unprofitable activity. In announcing that the company would take a strategic review of Fresh & Easy, Tesco CEO Philip Clarke said in a statement "Whilst the business has many positives, its journey to scale and acceptable returns will take too long relative to other opportunities."
The company also announced that Fresh & Easy CEO Tim Mason would be leaving the company after 30 years' service, and that it has appointed Greenhill & Co. to conduct a strategic review of the chain. Potential buyers of some or all of the stores include Aldi and Walmart, according to published reports.
Tesco had launched the Fresh & Easy concept in 2007, offering a grocery store with fresh food offerings in a footprint that was larger than a convenience store but smaller than a typical supermarket. But the stores, located in California, Arizona and Nevada, faced strong competition and a difficult economic climate over the past four years.
Globally, Tesco is the world's third-largest retailer as measured by annual sales, trailing Walmart and France's Carrefour.
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Tesco Fresh & Easy Loses $259 Million But Outlook Improves
The company also announced that Fresh & Easy CEO Tim Mason would be leaving the company after 30 years' service, and that it has appointed Greenhill & Co. to conduct a strategic review of the chain. Potential buyers of some or all of the stores include Aldi and Walmart, according to published reports.
Tesco had launched the Fresh & Easy concept in 2007, offering a grocery store with fresh food offerings in a footprint that was larger than a convenience store but smaller than a typical supermarket. But the stores, located in California, Arizona and Nevada, faced strong competition and a difficult economic climate over the past four years.
Globally, Tesco is the world's third-largest retailer as measured by annual sales, trailing Walmart and France's Carrefour.
For related content: Fresh & Easy Tests Mobile Shopper Scanning Solution
Tesco Fresh & Easy Loses $259 Million But Outlook Improves