Tesco to cut back Fresh & Easy expansion

Wednesday, 12 November 2008
 
Tesco will have to slow down the rollout of its US Fresh & Easy stores because of the grim financial situation in America, one of its executives has said today.

Fresh & Easy chief executive Tim Mason said the recession in the US means Tesco will have to rein in its expansion plans there - after Wal-Mart did the same recently.

He told the Times the company will have to show more prudence in the country in the coming months because the industry is in a "very different place" than it was a few years ago.

Mason said: "We will still open stores every week, but it's prudent to slow things down a bit.

"There's a big cost step for us when we open up northern California and we can be quite flexible about when we do that."

He added: "If the economy takes a turn for the worst, it would be unwise to accelerate."

At the end of October, Tesco said it will open 11 Fresh & Easy stores in the Arizona area of America.
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