Blog
Ansoff and Tesco - What Went Wrong with Fresh and Easy?
6th December 2012
Tesco's decision to review the future of its US grocery supermarket chain Fresh and Easy will provide us all with some fantastic teaching material to use when looking at some core topics such as international expansion, product/market strategy (Ansoff), retrenchment and other elements of corporate strategy. Tesco have invested up to $1.6bn over five years in trying to establish the Fresh and Easy format in the US, facing fierce competition. The result? Heavy losses and no sign of achieving the break-even point, even after five years.
There are lots of good video and other online resources which analyse the reasons for the failure of Fresh and Easy, together with the impact on Tesco's strategy as a whole. Some good ones are provided below.
Tesco - Fresh and Easy Promo
BBC Business Feature on Tesco Announcement
News Articles
How Tesco's Fresh & Easy became Stale & Difficult
http://www.guardian.co.uk/business/nils-pratley-on-finance/2012/dec/05/tesco-fresh-easy
Why Tesco's Fresh & Easy turned Americans off
http://www.guardian.co.uk/business/2012/dec/05/tesco-fresh-easy-turned-americans-off
Tesco's American dream over as US retreat confirmed
http://www.guardian.co.uk/business/2012/dec/05/tesco-american-dream-retreat-us-fresh-easy