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The Financial Times reports that Tesco's western US operation, Fresh & Easy Neighborhood Markets, plans to test an online shopping model "in a further attempt to stem losses" there while at the same time pitting it even more directly against Walmart, which is testing online grocery shopping in San Jose, California.

The program, called "click and collect," will allow shoppers to order online and then pick up their products at a local Fresh & Easy. To date, Tesco operates Fresh & Easy stores in California, Nevada and Arizona; no word yet on how many stores will be pilot the program.

The move comes within the context of continuing attention being paid to Fresh & Easy by Tesco, which is under some pressure from investors to bail out of the to-date unprofitable US business in order to focus more on its core UK operations. Tesco also has introduced a version of its UK Clubcard loyalty marketing program at Fresh & Easy.
KC's View:
It is noteworthy that Tesco is using a pick-up model in the US, since experience shows that it is a lot easier to make money that way than with a delivery program. I don't know that this is a game-changer for the company's US business, but it suggests that Tesco CEO Phillip Clarke is going all-in as it seeks a win here.