The biggest retailer in Britain, Tesco supermarket, is planning to end their presence in the U.S. market
December 5, 2012 – The biggest retailer in Britain, Tesco supermarket, is planning to end their presence in the U.S. market, as its supermarket in the U.S. Fresh & Easy is struggling and Tesco CEO Philip Clarke announced it would likely pull out of the U.S.
Clarke said the final decision had not been made by it was likely Tesco was leaving the U.S. Tesco is starting a strategic review of their Fresh & Easy and that could lead to them selling the business. The announcement was welcomed by Tesco investors, pushing up the shares of the retailing giant by 3.6% in early trading in London.
Tesco also added in their statement that Tim Mason the CEO of Fresh & Easy was leaving immediately after working 30 years with the British company. Clarke said that while the business in the U.S. has a number of positive attributes, its acceptable returns and journey to scale will take much too long in relation to other similar opportunities.
Therefore, said Clarke, the company will perform a strategic review of the Fresh & Easy chain and will take into consideration all options. Tesco announced it has been approached by a number of parties that are interested in purchasing some or possibly all of the Fresh & Easy locations. Others have mentioned partnering to help develop the business in the U.S.
Clarke said that Tim Mason, who left Tesco today, was a very important part of the company’s success during his 30-year career and wished him the best of look and gave him many thanks.
Fresh & Easy was launched by Tesco in 2007 by Terry Leahy the former CEO of the company, but has not turned a profit despite a $1.6 billion investment.
Tesco, earlier this year, entered into an agreement to leave its business venture in Japan after being there for nine years.