UK supermarket operator Tesco has unveiled its first major US advertising campaign in a bid to turnaround the company’s fledgling US venture Fresh & Easy Neighborhood Market, according to The Financial Times.
The media drive, worth a reported US$5.2m, is designed to highlight the fact that Fresh & Easy can save customers money by keeping things simple via radio advertisements and billboard slogans such as “wholesome foods, not whole paycheck”.
“The campaign focuses on explaining to customers how Fresh & Easy can offer both high-quality products and low prices,” said Tesco chief executive Sir Terry Leahy.
The move, which follows initial leafleting to attract shoppers to the stores in southern California, Nevada and Arizona, comes on the back of a stabilizing US economy and may indicate Tesco’s intention to resume expansion in the US, according to The Financial Times.
The Fresh & Easy chain lost just over US$135m in the six months to the end of August despite opening 30 stores in the last year. After being forced to slow expansion and make changes to its stores, the company is rumoured to be picking up the pace by opening a projected new store per week.
For now, Fresh & Easy is expected to concentrate on established markets in metro Phoenix, Las Vegas and southern California, where the company operates 130 stores. Eventually, the group reportedly plans to move into northern California and other US states.
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