Fresh & Easy Neighborhood Market, Tesco's US store chain, has said that it has streamlined its distribution model to reduce direct store deliveries, saving money on fuel and allowing it to pass on savings to customers.

The company said that the new "innovative yet simple" distribution model, agreed with suppliers, also helps the environment by reducing the amount of CO2 emissions, fuel consumption, traffic congestion and noise that multiple deliveries create.

"By keeping our distribution model simple Fresh & Easy is able to save fuel and offer honest, everyday low prices on all our products," said Fresh & Easy CEO Tim Mason. "Reducing fuel consumption is also consistent with our commitment to be a good steward of the environment."

A traditional grocery store receives many deliveries a day, including fresh and frozen food, produce and direct store deliveries from numerous suppliers, the company said. But to eliminate extra and unnecessary delivery trips, the company said it had created a new way of stocking stores using fewer deliveries by asking its suppliers to deliver directly to a centralised distribution centre.

To further conserve fuel, Fresh & Easy said it had employed "state-of-the-art technology" in its shipping fleet. Fresh & Easy trailers feature a hybrid refrigeration vector unit which minimises the amount of diesel used to safely cool and transport store products, the company added.