Abstract

Tesco, a major UK-based retailer, entered the US market in November 2007, opening a small-format store named Fresh & Easy. The case describes Fresh & Easy's entry strategy, touching on market research, store format, layout, location, etc. It then discusses some of the criticisms that the store attracted in the US. The case also discusses Tesco's decision in April 2007 to halt the opening of new Fresh & Easy stores for three months, after 61 stores had been opened. The case ends with a brief discussion on the unfavorable macro environment in the US, with inflation and recession rearing their heads.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the entry strategies of a retailer.
• Understand the differentiation strategies of a retailer.
• Analyze the importance of location, store format, layout, pricing, assortment planning, promotion and customer-orientation in the retail industry.

Keywords

Tesco, Fresh & Easy, US Retail market, Entry strategy, Differentiation, Convenience stores, Consumer research