Tesco admits to MR mistakes in US

US-- The head of Tesco's US operation has told the Sunday Times that its early market research was mistaken and that as a result it may make big changes to its stores strategy.

Tim Mason, head of Tesco's US business Fresh & Easy told the paper: “We may have assumed that certain elements of the Fresh & Easy brand would do the work for us and we would not have to go down and dirty on price. That may have been a mistake.”

Research conducted before the chain's launch in November 2007 was a key driver in identifying gaps in the market and creating retail strategy.

Marketing director Simon Uwins also told the paper: “We went into people's houses, talked to them about food and food shopping. We went into their kitchens and poked round pantries.” However the firm did not count on the US consumer's passion for promotions and special offers.

The paper reports that plans to expand the firm's 113 branches to 200 branches have been put on hold for at least six months.

Author: Marc Brenner