Fresh & Easy, the US banner operated by UK retailer Tesco, will increase its focus on price positioning in response to recession in the US.

"We always listen to our customers and they are telling us that price is becoming even more important since the onset of the recession," a Tesco spokesperson told just-food today (23 February).

"We will be acting on this," the spokesperson added.

Since entering the US market, Tesco has scaled-back its expansion plans as the economic downturn has squeezed consumer spending.

"We always planned to increase the rate of new store openings but we are now being more prudent with openings," the spokesperson admitted.

However, he emphasised: "We have not decelerated our rate of store openings. We are opening new stores every day and looking for new locations."

Tesco currently operates 114 Fresh & Easy stores in the US.

The company will provide an update on its US performance in its trading update on 21 April.