Tesco to open franchise stores for clothing brand F&F in US
15 Apr 2014
British supermarket chain Tesco PLC would open the first franchise stores for clothing brand F&F in the US this year, just about a year after it exited the country with its Fresh & Easy grocery business.
F&F, which launched in the UK and Ireland in 2001, would be opening seven stores on the east coast of the US this year, in partnership with its US franchise partner Retail Group of America, according to Tesco. It added, the first store opening would be near Boston in May, followed by four stores in New York, and stores in Philadelphia and Newport.
According to Tesco, the stores would feature a full range of womenwear, menswear and kids wear.
The retailer had also furthered its partnership with Al Hokair in Europe and Central Asia with the opening of its first store in Armenia.
The company’s clothing brand F&F had already opened several stores in Saudi Arabia, Kazakhstan and Georgia in partnership with Al Hokair.
The retailer sold its Fresh & Easy chain to YFE Holdings Inc last year following a failed attempt to crack the US grocery market.
F&F had been quick to expand since its launch in the UK and Ireland in 2001 and now operated in 21 countries.
Clothing sales had shrugged off an overall downward trend at the retailer, growing by nine per cent last year to top £1 billion.
F&F chief executive Jason Tarry said, the company had had a really positive response from customers in all its overseas markets so, it was hoping its American stores proved to be just as popular.
The announcement comes just ahead of Tesco’s yearly results, wherein it was expected to projected an another year of falling sales and profits, adding to pressure on chief executive Philip Clarke to move more positively on a turnaround.
According to analysts at Shore Capital they expected Tesco to report a 19 per cent fall in earnings in the year to February 2014.
