After experiencing a tough quarter, British supermarket operator Tesco announced that it plans to cut spending on its U.S.-based Fresh & Easy division. The decision means the company will be operating approximately 200 stores in the U.S. by the end of its fiscal year, rather than previously planned 230, according to our sister publication Supermarket News.
According to Phillip Clarke, Tesco's CEO:
Fresh & Easy is not where we want it to be, which is why future capital will be very tightly constrained. We’re not going to open very many more stores in the U.S. in the rest of this year or into next year. Instead, our focus will be on getting more stores across the profit line.