Fresh & Easy, the US unit of Tesco, has indicated that it will put plans to accelerate expansion in the US on hold due to the constricting economic conditions in the market.

"There is no doubt that the economy in the US is in a very different place to where it was when we entered the market," a spokesperson for Fresh & Easy's parent Tesco told just-food today (12 November). 

"We had always planned to accelerate our expansion in the second half of this financial year but in the current climate it is sensible to respond to the conditions we see now and so we have decided to continue opening stores at about the same rate as we have been over the last year."

Specifically, Fresh & Easy has indicated that plans to expand into northern California could be delayed. Currently, Fresh & Easy is ramping-up its operations in southern California, Arizona and Nevada.

Despite the decision not to escalate growth, the company was quick to emphasise that expansion in the US is continuing apace.

"We will open new stores every week, creating new jobs and attracting many more customers to Fresh & Easy," the spokesperson said.