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.
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“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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By GlobalData
