Tesco in the United States
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Case Details:
Case Code : BSTR291
Case Length : 13 Pages
Period : 2005-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Tesco
Industry : Retail
Countries : USA
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
A Good Neighbor
Fresh & Easy also took a number of initiatives to reduce the impact of its
operations on the environment. Every Fresh & Easy store recycled or reused all
its display and shipping materials.
The stores partnered with the Resource Management Group in its waste reduction
program. Also, it used only energy efficient light bulbs. The solar-power driven
distribution center at Riverside, California, was also part of its
environment-friendly initiatives...
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Challenges
In spite of all its pre-launch planning, Tesco's Fresh & Easy
received mixed reactions from critics and shoppers. While there were some who
appreciated the layout and convenience of the stores, many people were not happy
with the choice of brands that Fresh & Easy offered. According to some analysts,
a major problem with the stores was that they stocked too many private label
products - reportedly, around 45 percent of all the items in the stores were
private label...
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Outlook
Sir Terry Leahy - Tesco's CEO - had high ambitions
for the Fresh & Easy business and wanted to make it as big as the UK
business. According to a report dated March 14, 2008, Mason outlined
plans to grow the chain into a network of 1,000 stores stretching across
the West Coast from California, Nevada, and Arizona up to Washington.
Tesco announced in early March 2008 that it was expanding Fresh & Easy
into northern California and had identified 19 sites around
Sacramento... |
Exhibits
Exhibit I: Tesco's Store Formats
Exhibit II: Top Grocery Retailers in the US in 2006
Exhibit III: Tesco's Financials
Exhibit IV: Tesco Stock Performance from July 2005 to May 2008
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