Tesco has some ambitious plans set for the US. Sir Terry Leahy announced that both Tesco as well as the Fresh and Easy convenience stores would be expanding. He also noted that the Fresh and Easy chain would break into profitability in the 2012/2013 fiscal year.
To date, the convenience store chain has accumulated trading losses of 464 million pounds. The plan is that as it grows from 165 stores to 400 stores it will begin to break even. The stores are located in the West area of the US in the states of California, Nevada, and Arizona. To match projection plans the chain will be opening two stores every week.
The incoming CEO Phil Clarke, due to take the reins in March 2011, is in agreement with the Fresh & Easy plans. Clarke will be replacing current CEO Sir Terry Leahy who announced the latest plans for Tesco. Sir Terry, considered one of the UK’s most successful businessmen, has been at the helm of Tesco since 1997.
As far as the future of Tesco stores in the US, they are having to shut down some 13 stores due to the state of the US economy. Plans are to continue holding on to the properties of the closed stores and sublease them until they are reopened when the economy turns. “The expected population growth in these neighborhoods has simply not materialized and we’ll reopen these stores when the housing and employment markets pick up,” the company said.
Tesco operates in 14 countries. Total sales grew by 20.3 per cent with trading profits up by 30.3 per cent to 278 million pounds.