Tesco plc., parent company of Fresh & Easy Neighborhood Market, had mixed corporate sales for the holiday 2007 season period.
The retailer saw its stock share price drop heavily earlier this week on the news. Sales in its core United Kingdom (UK) market, which makes up about 75% of Tesco's retail sales, missed market analyst expectations. Its poor showing in the UK was due in large part to an exceptional showing by UK food retailer Morrisons, one of Tesco's chef competitors.
Tesco's sales abroad were much better though, and continue to surge due in large part to numerous new store openings in Europe, Eastern Europe, the USA and elsewhere.
The British retailer also said the initial response by consumers in the Western U.S. to its Fresh & Easy Neighborhood Market stores has been "very encouraging." The retailer currently has 29 of the small-format, convenience-oriented grocery markets in California, Arizona and Nevada. Tesco hopes to have as many as 200 stores open in these markets by the end of 2008.
Read a complete analysis of Tesco's holiday season sales and earnings here.