Tesco to expand Fresh & Easy

Tesco has signalled its intention to expand its Fresh & Easy convenience store chain in the US after opening its first two outlets in northern California.

According to the company, a further 10 Fresh & Easy Neighborhood Markets are due to be officially opened in the region by the end of April, following the unveiling of new stores in San Jose and Danville, a suburb of San Francisco this month.

The planned expansion comes as Tesco attempts to turn around a recent poor financial performance at Fresh & Easy, which sustained a $269 million (£165m) loss during 2010.

Last October, the company closed 13 stores mainly in the states of Arizona and Nevada, which have been hit hard by the recent property crash and ensuing recession.

Sir Terry Leahy, the former Tesco group chief executive succeeded by Philip Clarke this week, previously stated that he expected Fresh & Easy to break even by 2012/13.