Tesco’s US chief said the roll-out of its fledgling Fresh & Easy business could be forced to slow down because of the meltdown in the American economy.
Fresh & Easy chief executive Tim Mason told The Times that it was prudent to take a far more flexible approach to the business.
Mason said that while Tesco had hoped to have 200 Fresh & Easy stores by February next year, it may now take until November next year to achieve this goal.
Mason said: “The industry is in a very different place than when we came out and did the feasibility research three years ago. Then the US consumer confidence index was at the highest level it had ever been.”
He continued: “In October the US consumer confidence index was the lowest it has been since 1967, so it’s a big change. We will still open stores every week, but it’s prudent to slow things down a bit.”
Tesco is spending $1.25 billion over five years trying to break into the US. The Fresh & Easy chain celebrates its first birthday this week.
Mason said that while times are tough, critics of Fresh & Easy would be proved wrong. “We are absolutely thrilled with the customer response from those loyalists that have got it, and really loved what we do. What retailer has better staff, better product quality and delighted customers and doesn’t make it?”
Tesco begins Competition Commission appeal
Separately, Tesco said yesterday that the Competition Commission’s arguments in its ruling on the supermarket sector in April were flawed.
Nick Green QC, acting for Tesco at the Competition Appeals Tribunal, said the commission had not analysed the market correctly and its report was full of inconsistencies and gaps.
Tesco is challenging the competition test, but rivals Waitrose, Asda and Marks & Spencer are expected to testify in support of the remedies.
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