Tesco to launch smaller US Fresh and Easy stores

Tesco is set to trial a smaller sized convenience store in the US, in an attempt to boost its Fresh & Easy chain.

Tesco's new Fresh & Easy store in California
Tesco's new Fresh & Easy store in California

Tesco – the largest supermarket chain in the UK – announced in 2007 its plan to enter the US market with the Fresh & Easy brand.

But it has struggled to get off the ground across the Atlantic, and is now experimenting with its first Fresh and Easy Express store in southern California.

The stores, which is around 3,000 square feet rather than the typical 10,000-square-foot US superstore size, will allow Tesco to have a presence in smaller communities.

The decision comes as Tesco tries to make Fresh & Easy break even by the end of the 2012-2013 financial year.

Tesco, which already operates stores in South Korea, China and central Europe, could also roll out a Clubcard-style loyalty scheme in the US later this year, according to the Financial Times.

In April, Tesco chief executive Philip Clarke admitted that its UK performance had been below par as it revealed like-for-like sales fell in the UK for the 12 months up to the end of February 2011.

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