An experienced US retailer turned consultant has slammed Tesco’s reports of Fresh & Easy’s performance in the US as “coded language” that is “an insult to everyone in the industry”.
Perishable Pundit Jim Prevor, the US produce guru, published the letter from David J Livingston of DJL Research online, following extensive coverage on his blog of Tesco’s stateside venture.
Prevor recently posted a piece entitled 'Tesco’s earnings report comments indicate better sales; $200m (£100m) in losses expected', following a results release from Tesco. According to Prevor, the store had originally promised to release separate financials for its US unit - a commitment it now seems have reneged on.
Prevor wrote: “As we have mentioned many times, we would like nothing better than to see Tesco succeed in the US. In a consolidating market, a new retail concept rolling out nationally and inspiring others to launch small format chains will be a boon to the supply side. So if we were wrong in our assessment, we will joyfully eat crow. But we will hold on calling the baker to make the blackbird pie until we actually see full financials.”
Language used by Tesco about Fresh & Easy such as “sales are ahead of budget” and “sales densities are already higher than the average US supermarket industry average” have attracted harsh criticism from some corners of the industry.
Livingston’s letter formed one part of a whole host of commentary sent to Prevor in response. He wrote: “Don’t worry… you won’t be wrong about Tesco. Tesco is doing all it can to cover up its failure. Its press releases are carefully worded to put a positive spin, but not to lie at the same time. Basically it is saying it’s possible that one or two stores might have cracked $200,000 during one week of grand opening. Unless it releases sales for all stores individually for the past quarter, we will still have to go by the second-hand reports given to us by former employees who are leaving the company.”
Jim Prevor will be speaking at the Re:fresh Conference on May 8 at the London Marriott, giving delegates his view’s on the day’s events and presenting his thoughts on the organic debate. Register now at www.refreshconference.com/register, or email info@fpj.co.uk
No comments yet