Guest blogger Lance Jungmeyer here ...
The hometown press sure goes easier on Tesco than other media, it seems. In addition to
The Independent news story referenced in the following post, here is a
wire story about Tesco's profit statements.
There have been numerous reports of Fresh & Easy locations missing sales targets by 50% or more. Yet, the article quotes Tesco's statements:
"We are very encouraged by the start Fresh & Easy has made," Tesco said in its earnings statement.
"The first stores opened only in November and we now have over 60 trading. Whilst it is still early days, the response of customers to our offer has surpassed our expectations ... Sales are ahead of budget," it added.If sales were indeed ahead of budget, clearly Tesco would not be taking a three-month hiatus from opening new locations.
What is striking is how at least one UK analyst laps this up. The story quotes Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers.
"Tesco has yet again confounded its doubters, not only with another sparkling set of figures, but also with an upbeat accompanying statement which sets it apart from the crowd," he said.It is true that overall profits for the retailer are up more than 12%. But from this side of the pond, all that anyone wants to know is this: what are the real numbers at Fresh & Easy?
Don't hold your breath waiting for an official answer from Tesco.
Labels: FDA, Fresh and Easy