Tesco’s Foray, and Failure, in the U.S.
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When UK-based retailing giant Tesco launched its Fresh & Easy stores in the U.S. just six years ago, Chief Executive Terry Leahy was confident in the venture. “We can research and design the perfect store for the American consumer in the 21st century,” he said at the time. “We did all our research, and we’re good at research.”
No question, Tesco is known for cutting edge use of data. Mr. Leahy invented the Tesco Clubcard, revolutionizing consumer data collection, in addition to working closely with customer science consulting firm Dunnhumby to analyze the data. Tesco purchased a majority of Dunnhumby in 2001 and today owns it entirely.
So Tesco asked their questions, looked at their numbers, and got their answers. Americans wanted fresh, convenient, organic, quality products at a good price from a store that was socially and environmentally responsible. They did find a paradox in the data, however. Americans had a greater desire for a one-stop-shopping experience, but in reality, visited more stores than their British counterparts.
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