• Financial Times, Tuesday, June 17, 2008 10:30 AM

In spite of the efforts of Tesco U.S. CEO Tim Mason to keep a low profile on the retailers Fresh & Easy rollout, it has drawn critics far and wide who say the model will not work. They argue that the stores have too few branded goods for U.S. shoppers, the look is too utilitarian, the wrapped fruit and vegetables are "unappealing" and the self-service checkouts are unpopular.

Mason says he suspended new store openings for three months to tweak the model in existing outlets. The changes are evident. At the entrance, there are palettes stacked with bags of charcoal for $4.99 and 24 packs of Coca-Cola for $5.99. The first thing customers see as they enter the doors is a four-feet high mountain of San Pellegrino water for 99 cents a bottle and a new "extra low prices" unit stacked with discount offers on meat and prepared meals.

Tesco has also being more aggressive in marketing and couponing.

There also have been another 23 new ready meals put into the stores, from classic meatloaf to shepherd's pie. Mason says that Fresh & Easy has about 120 different ready meals now, with another 60 to be made in the coming months.

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