Investors welcomed the announcement, pushing Tesco shares up 3.6 percent in early London deals. Tesco added in a statement that Fresh & Easy chief executive Tim Mason was leaving the company with immediate effect after 30 years with the British group.
"Whilst the (US) business has many positives, its journey to scale and acceptable returns will take too long relative to other opportunities," Clarke said in the statement. "I have therefore decided to conduct a strategic review of Fresh & Easy, with all options under consideration." Tesco said it had received "a number of approaches" from parties interested in acquiring some or all of Fresh & Easy, or in partnering the company to develop the US business.
Clarke added: "Tim Mason, who leaves Tesco today, has played an important part in our success over a 30-year career with the company, and he leaves with my thanks and good wishes." Launched in 2007 by former Tesco chief executive Terry Leahy, Fresh & Easy has failed to turn a profit despite investment of about £1.0 billion ($1.6 billion, 1.2 billion euros).
Tesco said on Wednesday that Fresh & Easy's sales performance fell below 2.0 percent during the British company's third quarter. It added that revenues from its stores in Britain open more than a year, and excluding income from value added tax and petrol sales, fell 0.6 percent in the three months to November 24. Earlier this year, Tesco struck a deal to exit its Japanese business after nine years.