retail news in context, analysis with attitude

In the UK, the Telegraph reports that Tesco has halted the opening of any new Fresh & Easy stores in the US, a move that "is intended to allow Tesco to focus on making the existing stores profitable and restricting further investment into the US."

“We are clear that Fresh & Easy needs to demonstrate it can be a positive return for shareholders,” CEO Philip Clarke said. “This is a clear message to the market. I hope they like what we have chosen to do.”

The move means that Fresh & Easy will end 2012 with 200 stores in California, Arizona and Nevada, rather than the 230 originally projected. Tesco says that it wants Fresh & Easy to be in the black by 2014, a year later than the company had been predicting.
KC's View:
I continue to believe that Tesco would like Fresh & Easy to be a sustainable concern. But I also believe that if someone wants to write a check of sufficient value, Tesco's leadership would take about 30 seconds to decide to take the offer.