Tescos US stores 'not profitable'
Tesco has decided against releasing comprehensive sales figures for its fledgling US business until next year amid scepticism that it can mount a serious challenge to Wal-Mart’s dominance of the world’s biggest food retailing market. Sunday Telegraph
Influential commentator Jim Prevor said: 'My assessment is that from the customer count and the dollars being spent, it is not possible to make the enterprise profitable.'
The damning verdict comes less than three months after the grocery chain opened for business on the US West Coast. In its January trading update issued earlier this month, Tesco said that “interest” in Fresh & Easy had been “encouraging” but declined to give any guidance on the stores’ early sales performance.
Retail industry speculation suggests that the business may be undershooting internal sales estimates, but Tesco has said that sales figures for the first 18 months are meaningless' while Fresh & Easy is established.