Tesco likely to quit USA

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Tesco likely to quit USA

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Under pressure from its shareholders, Britain’s Tesco is reviewing its presence in the United States.

The world’s third largest retailer will consider whether to remain in the cut-throat American grocery market.

It has 200 stores there under the Fresh & Easy brand, that after five years have yet to make a profit.

“We’ve now concluded that it is not going to deliver acceptable shareholder returns in an appropriate timeframe in its current form,” Phil Clarke, chief executive of the British company, told reporters.

“It’s likely but not certain that our presence in America will come to an end,” said Clarke, speaking from Los Angeles.

A decision will come next April when the company publishes its full-year results.

The latest quarterly trading results showed Tesco needs to focus on its struggling UK business and faster-growing emerging markets.