In 2013, Tesco announced that it was pulling out of the US market after just two years. The UK’s biggest retailer had barely made a dent in the world’s biggest economy. So, what went wrong?
Tesco entered the US market in 2007 with high hopes. It acquired a chain of grocery stores called Fresh & Easy, and set about trying to revolutionize the American grocery shopping experience.
It invested heavily in technology, including self-service checkouts and an innovative home delivery service. It also tried to appeal to health-conscious shoppers by stocking more fresh and organic produce than most other stores.
However, none of these initiatives really took off. American shoppers just didn’t warm to Tesco’s stores.
They found them confusing and uninviting, and they didn’t like the fact that they couldn’t find all their favorite brands under one roof. As a result, Tesco failed to attract enough customers to make its US business profitable.
So, why did Tesco fail in the US? There are several reasons.
Firstly, the company overestimated Americans’ willingness to try new things. Secondly, it didn’t do enough research into the American market before launching its Fresh & Easy stores. And thirdly, it didn’t adapt its business model to suit the US market.
In conclusion, Tesco’s foray into the US market was a ambitious but ultimately unsuccessful attempt to conquer a new territory. The company made several mistakes in its approach, and ultimately failed to win over American shoppers.