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From Times Online - March 13, 2008
*Tesco makes first change to Fresh & Easy team*
Steve Hawkes
Tesco has made the first change to its executive
management team at Fresh & Easy, its fledging
American supermarket chain, The Times has learnt.
Jeff Adams, the American-born chief executive of
Tesco’s Lotus
business in Thailand, is heading back to the US
where it is understood he will be second-in-command
to Tim Mason, Fresh & Easy’s chief executive.
The move is likely to spark fresh concerns over the
health of the new venture.
Tesco has been dogged by persistent speculation that
Fresh & Easy is missing internal sales targets set
at the time of the launch in November last year.
Tesco eyes expansion of its American dream Catfish
and cactus leaves Monday manifesto: Sir Terry Leahy
The concept is based on the smaller Tesco Express
convenience format and is new to the US grocery
market, dominated by the giant stores run by the
likes of Wal-Mart.
Piper Jaffray, the broker, last month claimed that
sales across 50 Fresh & Easy stores in southern
California could be averaging £170,000 a week -
below the rumoured £200,000 target.
Mr Mason hit back days later by announcing plans to
expand in northern California and insisting that
sales and customer numbers were growing every week.
A source close to Tesco insisted the appointment of
Mr Adams was about supporting Fresh & Easy’s further
growth rather than fixing problems.
Tesco believes there is potential for up to 1,000
Fresh & Easy stores across the west coast of America
and property agents in the US claim the supermarket
giant is also looking for sites in Chicago. It
considered launching in Colorado.
Mr Adams joined Tesco Lotus from Wal-Mart and is
widely credited with its success in the past four
years. Two former Wal-Mart colleagues also work in
Fresh & Easy’s management team.
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