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Bad News

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Submitted By robertstewart01
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Tesco profits fall as supermarket pulls out of US article –
Tesco as we know it by in the UK had stores in the US with the name “Fresh and Easy” who are a chain of grocery stores in the US owned by Tesco. Fresh and easy is Private Limited Company and expanded into the US in 2007. They were already making a loss in 2009 of £142m, Tesco have decided because they are making a significant loss from the US stores that they are going to pull out. Tesco have said that the UK is the best market for them.
Tesco had a lot of Competitors in the US as they do in the UK including, Safeway, Target, Wal-Mart, Walgreen’s etc. These are all very popular stores in America, Fresh and easy was obviously just not one of them.
This is going to have a large effect on the Stakeholders of the business; Employees: Fresh and easy employed over 50,000 people which is a massive amount, it may be difficult for some to find another job and it will be difficult for families where there is only one job supporting the family. Because the number is so large it will have effect on the countries unemployment number. Customers: It will affect the customers because for those who only had a Fresh and easy as their local store it will mean that they will have to commute further so they will have to purchase more fuel to be able to commute to their next nearest store.
It will also have an effect on the Shareholders of the business, those who invested a lot of shares into the business will have lost everything after this which is great news for them.
There could be many reasons why they did not make a profit, for example; Marketing: it is possible that their marketing department did not do a good enough job such as advertising and research to attract customers in. Maybe they could not compete with the low prices of their competitors. Decision Making: The

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