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Following up on the reporting of its financial results earlier this week, which were at the upper end of what analysts expected, the Financial Times reports that Tesco CEO Sir Terry Leahy described the company as having gone “through an extraordinary period and we are in pretty good shape.”

While there has been reporting that Tesco’s rivals – including Sainsbury, William Morrison Supermarkets, and Walmart-owned Asda Group – have been nibbling way at its UK market share, Leahy believes that Tesco’s growth has “converged with the wider industry,” and that further erosion probably won’t take place.

Leahy pointed to the relaunch of Tesco’s Clubcard loyalty program – which has added one million members to Tesco’s list – as being a boon to the company’s efforts.

And, Leahy defended the company’s US Fresh & Easy Neighborhood Markets operation, which has underperformed to the extent where some have questioned its viability.

“If you look at the stores on the coast, about half the stores, they are progressing well, getting into the turn-over ranges that we want, even though the economy there has been pretty depressed,” Leahy tells FT, adding, “This happened to us in the recession of the early 90s in the UK. We opened a lot of stores particularly in the north of England that did very badly, but as soon as recovery started, they did incredibly well.”
KC's View:
Naysayers be damned. For the moment, at least, Tesco isn’t considering an exist strategy from the US.