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Fresh & Easy is Open and Planning to Stay That Way

February 5, 2013

Tesco may be considering its alternatives when it comes to doing business in the U.S., but the company's Fresh & Easy division wants its shoppers to know there's no reason for them to be looking elsewhere to shop.

According to the Fresh & Easy website, the company sent an e-mail on January 31st to clarify "stories circulating about our stores."

The e-mail said, "We want to assure you: we don't have plans to close stores. We're still committed to providing delicious, wholesome and affordable food every day. We're still Fresh & Easy; open for business with everything that you enjoy about our store, with even more exciting things to come. That's why we're going to keep on fighting the good food fight."

Many remain skeptical of Fresh & Easy's future prospects.

Bob Goldin, executive vice president at Technomic, told Southern California Public Radio that the chain has not connected with consumers through its selection or prices. He thinks that a chain such as Dollar General may be interested in acquiring Fresh & Easy sites.

"I think if anyone were to do it, they would be converting the banner [and] rebranding them," Mr. Goldin said.

Tesco is expected to provide an update on its Fresh & Easy plans in April when it reports on its fiscal year.

FINANCIALS:     [LON:TSCO] [ NYSE:DG]

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