Tesco Suspends US Expansion Plans

Tesco has brought a halt to the continuing rollout of its US convenience store chain, Fresh and Easy.
The supermarket giant confirmed yesterday that the expansion of its US business will be halted for at least three months while it reviews the performance of the chain.
The move follows reports that the US business has failed in meeting the company’s internal sales targets, with one analyst claiming that sales could be as low as one third of the £100 million it had been forecast to record in the first six months.
Tesco said the expansion break had always been planned and added that the group was so far “very pleased” with its US operations, citing customer response as “very encouraging”.
The retailer is expected to release its 2007 results on 15 April, which it hopes will stop circulating rumours of all not being well with its US business .
Tesco launched the Fresh and Easy venture in November and has since seen 60 stores open for business in Los Angeles, Phoenix, Las Vegas and San Diego .

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