From the Tesco perspective, the press coverage generated by the announcement that it has decided to close 12 Fresh & Easy stores may seem a bit overblown considering the chain is looking to open 25 new units by the end of March.
On the other hand, Fresh & Easy's struggles in the U.S. have been well documented. Last year the chain closed 13 units and Tesco CEO Philip Clarke has said he is looking for the chain to reach break-even at some point in 2012 or 2013.
Fresh & Easy has said that it needs to get to 300 units to reach break-even. The chain currently has 184 locations in Arizona, California and Nevada.
Tesco will report its annual results in April. Through the first six months of its fiscal year, Fresh & Easy reported a loss of $112 million on sales of $470 million. According to the company, the loss was 23 percent less than for the same period last year.
As in the past, Fresh & Easy is presenting the decision to close stores as a temporary move.
"At this time, there is simply not enough growth in sales and customers at those stores to keep them open," Fresh & Easy spokesperson Brendan Wonnacott told the Los Angeles Times. "We will re-open them when economic and business conditions warrant."
- Tesco to Close Up to 12 Fresh & Easy Stores - Fresh & Easy Buzz
- Welcome to the Neighborhood: Second Fresh & Easy Express Opens Tomorrow in Eclectic Hermosa Beach, California Neighborhood - Fresh & Easy Buzz
- Tesco to shut 12 more Fresh & Easy stores - Financial Times
- Tesco announces temporary closure of more Fresh & Easy stores in US - The Guardian
- Seven Fresh & Easy grocery stores to close in Southland - Los Angeles Times