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The Los Angeles Times quotes Piper Jaffray senior analyst Mike Dennis as saying that Tesco’s Fresh & Easy Neighborhood Market format continues to struggle- - it isn’t doing enough sales to come close to justifying the enormous investment that Tesco has made in the US, “hasn’t established much brand recognition and has been forced to offer deeper-than-expected discounts to generate even sluggish store traffic.”

Dennis predicts that things will get tougher for Fresh & Easy before it gets better, and is recommending that the company fold the format into an existing US retail entity that better understands the US market.

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