Tesco has decided to temporarily close 12 “under-performing” Fresh & Easy stores in the US.
The UK retailer said sales and customers at those outlets were not high enough to justify keeping them open.
“There is simply not enough growth in sales and customers at these stores to keep them open. We will close these stores over the coming weeks and we will re-open them when economic and business conditions warrant,” the company said today (11 January).
The announcement will add to the criticism from some analysts over the performance of Fresh & Easy since Tesco entered the US market in 2007.
The business has yet to make a profit; losses have been coming down but in the six months to 27 August, Fresh & Easy reported a trading loss of GBP73m (US$112.7m). Sales increased by more than 23% during the period and like-for-like sales climbed 11.9% during in the third quarter of Tesco’s financial year.
However, when Tesco reported its third-quarter financial results, finance director Laurie McIlwee expressed dissatisfaction with sales growth at Fresh & Easy.
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