Blog: What will Clarke's leadership mean for Tesco in the US?
Petah Marian | 4 March 2011
Tesco has signalled its confidence in the US with the opening of its first northern California stores, a move that perhaps cools speculation that new CEO Philip Clarke could pull the plug on the struggling venture.
The retailer yesterday said it had opened a store in San Jose and another in Danville, in the San Francisco Bay area.
The retailer plans to open a further 10 stores between now and the end of April.
The announcement may put to rest suggestions that Clarke may not be behind the US venture.
Speaking to just-food yesterday about the retailer's US operations, where it is yet to make a profit, Shore Capital analyst Clive Black said that Clarke "has already set an ultimatum in our minds" that either it "demonstrates within a year or so a trajectory towards materially improved financial performance or it's going to be either closed, or sold".
However, he added that should it be able to turn make the venture profitable, it will find itself in a very "virtuous situation" as it owns its headquarters, distribution and food production facilities, which would obviously have a favourable impact on margins.
With this continued investment into the region, hopefully it is only a matter of time before the operations begin to record a profit.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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