From the San Fran Chronicle: British supermarket chain Tesco is considering closing down its 200 American Fresh & Easy
grocery stores - 19 in the Bay Area - after they failed to deliver
acceptable shareholder returns, the company announced Wednesday.
"Whilst the business has many positives, its journey to scale and
acceptable returns will take too long relative to other opportunities," Phillip Clarke, Tesco's chief executive, said in a written release.
The firm said it will conduct a strategic review of the U.S. grocery
chain before making a final decision, which could include selling off
the stores instead of shutting them down. Company officials say they
have been approached by a number of parties interested in acquiring
either some or all of the business, or partnering with Tesco.
In the meantime, Fresh & Easy stores are staying open.
"Our focus remains on our people and our customers," said Brendan Wonnacott, director of Fresh & Easy's corporate affairs. "It is business as usual in our stores."
Officials are not giving a timeline for the review, but have hired a
private firm to assist them with the study and hope to announce some of
its findings in April. In the third quarter this year, Fresh &
Easy's sales fell 2 percent, according to the company.
MKE: City of Death From Speeding
3 hours ago
It sounds to me like they didn't find their niche, and couldn't compete in the grocery market, particularly in southern California. Their model is more like an urban downtown market than a suburban supermarket. So the "Obama's economy" business is a little disingenuous. But I'm going to miss Fresh & Easy if it goes. I go there a lot, for produce, meats and cheeses and the like.
ReplyDelete