Summary:
Tesco's misbegotten adventure
TESCO is facing a £1bn write-down as it retreats from its ill-fated foray into America. The company is expected to close down all their off-shore stores simply because the amount of profit they make isn't big enough. Tesco's was called "Fresh & Easy" in America, but it wasn't as big of a hit as they expected it to be. Investors welcome this decision, as they have steadily been losing money since the start of this venture into foreign territory. This venture was the idea of Sir Terry Leahy, former chief executive of TESCO.
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Personal opinion:
Ignore is bliss, as many would say. They were made aware very early on by business entrepreneurs that this venture was a foolish mistake and would cost way more money than it would be worth. Alas, they decided to go with it anyway and look where it got them. I feel they had it coming. America doesn't need ANOTHER supermarket when they already have Kmart, SuperTarget, Trader's Joe's, Walmart and many more. Why would you ever want to mess in a market that already has already been dominated by such big names. Just stick to the UK. I understand you want to branch out, but next time, listen to people that actually understand what they are talking about.
Words: 118
Source: Oliver Shah (14 April 2013). The Sunday Times. Tesco faces 1 billion pound hit for American adventure. Retrieved from http://www.thesundaytimes.co.uk/sto/business/Retail_and_leisure/article1245140.ece
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