Tesco has revealed that it is effectively running a vertically integrated food processing facility at its distribution centre on the edge of Los Angeles.

The UK’s largest grocer is taking food products and turning them into ready meals on the premises before selling them in its fledgling Fresh & Easy stores. The move is a departure for Tesco, which typically uses third parties for food processing.

The revelation came as Tesco showed its Fresh & Easy stores to 68 buy-side retail analysts. On the trip, Tesco finance and strategy director Andrew Higginson said the potential scale of its US operation “could move the dials for the group”.

The grocer plans to have 50 Fresh & Easy stores in the US before the end of February and it is understood to have secured 270 sites.

Blue Oar Securities analyst Greg Lawless, who was on the trip, said Tesco has found a large niche in the Californian market.

Separately, Tesco has restructured its clothing, buying function for Central Europe, following the departure of Julia Reynolds, who is leaving to join Figleaves.com.

Amanda Kearns, formerly lead head of buying for childrenswear in UK clothing, will become buying director of Central European clothing. Mark Laxton, lead head of merchandise planning and head of Prague for CE Clothing, will become merchandise planning director for the region.

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