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Tesco has made the first change to its executive management team at Fresh & Easy, its fledging American supermarket chain, The Times has learnt.
Jeff Adams, the American-born chief executive of Tesco’s Lotus business in Thailand, is heading back to the US where it is understood he will be second-in-command to Tim Mason, Fresh & Easy’s chief executive.
The move is likely to spark fresh concerns over the health of the new venture.
Tesco has been dogged by persistent speculation that Fresh & Easy is missing internal sales targets set at the time of the launch in November last year.
The concept is based on the smaller Tesco Express convenience format and is new to the US grocery market, dominated by the giant stores run by the likes of Wal-Mart.
Piper Jaffray, the broker, last month claimed that sales across 50 Fresh & Easy stores in southern California could be averaging £170,000 a week - below the rumoured £200,000 target.
Mr Mason hit back days later by announcing plans to expand in northern California and insisting that sales and customer numbers were growing every week.
A source close to Tesco insisted the appointment of Mr Adams was about supporting Fresh & Easy’s further growth rather than fixing problems.
Tesco believes there is potential for up to 1,000 Fresh & Easy stores across the west coast of America and property agents in the US claim the supermarket giant is also looking for sites in Chicago. It considered launching in Colorado.
Mr Adams joined Tesco Lotus from Wal-Mart and is widely credited with its success in the past four years. Two former Wal-Mart colleagues also work in Fresh & Easy’s management team.
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