Tesco in the United States is apparently ready to pull the plug on Fresh & Easy Neighborhood Market. The company recently said it has hired Greenhill & Co., a British investment banking firm, to conduct a strategic review of the US operation, with results of that review scheduled to be discussed at Tesco’s annual meeting in April. However, while Philip Clarke, Tesco’schief executive officer, said the company is considering “all options for the business, it is likely the review will lead to Tesco exiting the US market,” he added. He said Tesco has had “a number of
approaches in recent months from parties interested in acquiring all or part of Fresh &
Easy or in partnering to develop the business.” Industry observers have speculated Wal-Mart Stores or Aldi might be potential buyers for some Fresh & Easy stores, and drug chains might also be interested. It might be more difficult for Tesco to dispose of its distribution centre in California, observers say. Tim Mason, CEO of Fresh & Easy and group deputy CEO of the parent firm — who was instrumental in designing the Fresh & Easy format — recently left Tesco.