Tesco has reacted with forceful denials when reports have circulated suggesting that the British retailer's entry into the U.S. market has been less successful than the company expected before it opened its first location on the West Coast.
Now, it comes to light, that Tesco has decided to take a three-month breather from opening new locations after it rolled out 59 stores in its first four months.
According to a report by The Telegraph, Simon Uwins, marketing director of Fresh & Easy, wrote on a company blog, "We've given ourselves a little bit of time to kick the tyres, smooth out any wrinkles, and make some improvements that customers have asked for."
Mr. Uwins said that Tesco would begin rolling out new locations after the three-month waiting period was over.
"Improving the operation and the shopping trip is what we do every day ... but the next three months will allow us to accelerate this process, before we restart what's been described as an opening programme on steroids," he wrote.
One of the changes taking place is that an American-born member of Tesco's executive team, Jeff Adams, is moving from his position as chief executive of the retailer's Lotus division in Thailand to work with Tim Mason, CEO of Fresh & Easy.
Discussion Question: Are you reading anything between the lines of Tesco's decision to hold off opening any more new stores for three months? What do you think now of the future prospects for Fresh & Easy in the U.S.?