Tesco’s US strategy has been dealt a huge blow as the UK retail giant has admitted a mistake in strategy, slowing the planned opening of over 80 stores.
Tesco’s Fresh & Easy brand has not been as successful as expected when the US operation launched in November 2007, aiming to target the grocery market.
There were plans to increase the 114 current outlets but plans to open 200 further branches have been postponed as recession has slowed the retailer's expansion.
Tim Mason, head of the firm's US business, said: "We may have assumed that certain elements of the Fresh & Easy brand would do the work for us and we would not have to go down and dirty on price. That may have been a mistake."
It is thought that misjudgement over customer loyalty and promotions may be the key to the lack of success felt at some Fresh & Easy stores.
A spokesperson for Tesco told FPJ: “The business plan was to accelerate growth towards the second half of the year but, actually, we are just growing at the same rate as before.
“At the end of April, we will publish our annual results and study them and at that time we will make a prediction on store numbers.”
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