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Tesco's chief says Fresh & Easy's time may be up
December 5th, 2012
LOS ANGELES – British retail group Tesco PLC has launched a strategic review of its Fresh & Easy business in the United States that will likely lead to the sale or closure of the chain's 200 stores in California, Arizona and Nevada.
Tim Mason, who is Fresh & Easy's chief executive officer as well as deputy CEO of Tesco, is leaving the company.
"Following a year in which my priority for Fresh & Easy was to improve its performance, I have now made a fully-informed assessment of its longer term potential," said Tesco chief executive Philip Clark. "Whilst the business has many positives, its journey to scale and acceptable returns will take too long relative to other opportunities. I have therefore decided to conduct a strategic review of Fresh & Easy, with all options under consideration."
It is likely but not certain that Tesco will decide to exit the U.S. market, Clarke added.