Sabtu, 30 Juni 2012

Tesco could pull out of America if it sees 'no chance of success', says boss Philip Clarke

Tesco could pull out of America if it sees 'no chance of success', says boss Philip Clarke

By This Is Money Reporter

PUBLISHED: 08:31 EST, 30 June 2012 | UPDATED: 08:31 EST, 30 June 2012

Tesco's chief executive Philip Clarke said it could pull the plug on its loss-making American venture Fresh Easy if it can not turn its fortunes around.

Despite improving sales after a revamp, the grocery chain on America's west coast racked up losses of £153million last year and has yet to make a profit.

'If we see there is no chance of success, we’ll do as we’ve just done in Japan,' Mr Clarke said, referring to Tesco’s deal this month to exit that market.

Troubled: Fresh Easy, the supermarket opened in the USA by Tesco

Troubled: Fresh Easy, the supermarket opened in the USA by Tesco

'It is not about ego, we are businessmen,' he told shareholders at its annual meeting in Cardiff.

The world’s third largest retailer has been dogged by a left-wing shareholder advisory group which wants it to review its strategy for the loss-making chain. The Change to Win Investment Group, which advises US trade union-sponsored pension funds, asked Tesco to establish a committee of non-executive directors to review Fresh Easy’s future.

Tesco chairman Sir Richard Broadbent said: 'We will not be doing that.'

One investor called on Mr Clarke to quit if the business did not begin to improve.

'Will you resign if you don’t achieve them [targets] or will we have to vote you out?' he asked.

Sir Richard said Clarke was 'evidently one of the best retailers in the world' and said there was 'absolutely no prospect' of him resigning. He said Tesco was 'not hiding anything at all at Fresh Easy'.

Speaking after the meeting, Michael Zucker at Change to Win said: 'Investors will no doubt be troubled that the company seems calmly willing to continue making losses in the US, as it has since the launch in 2007.'

The annual meeting followed Tesco's first profit warning in at least 30 years, after sales slipped in the UK.

Clarke said that in the UK Tesco had 'allowed the shopping experience to become less appealing in a difficult economic environment'.

Fresh Easy does not recognise trade unions and most consider the advisory group to be politically motivated. Broadbent said the strategy for Fresh Easy was regularly reviewed by the whole board, with the retailer reporting fully on the business in its annual report and accounts.

Tesco also managed to shrug off concerns by shareholder body Pirc that its pay policy had the potential to be ‘wholly excessive’.

Almost 97 per cent of shareholder votes were in favour of the retail giant’s remuneration report at the meeting held in Cardiff.

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What's different with Fresh Easy that's so different Americans would go there? As a diabetic, I'm desperately waiting for someone to set up a superstore devoted to a range of diabetic foods/sugar free/low carb so that I can go shopping and grab stuff without worry, because usually I end up spending hours checking the contents of everything. If FE got itself a whole section of diabetic worry free stuff I'm sure a huge section of the US population would drive there to at least get some variety with their food. :-)

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Tesco to pull out of America? Yay!! Now if we could only get it to pull out of Molesey...

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