TESCO warns on US delay costs
TESCO warns on US delay costs
As reported in the Financial Times, Tesco has claimed that an attempt to put a court block on the construction of a grocery distribution centre in California could cost the retailer over USD50 million if successful. The depot will be the backbone of Tesco’s distribution network for the new stores that it is planning to open later this year but it is facing a challenge under a California environmental law that will go to trial in June. Last week, Tesco successfully opposed a bid to secure a temporary restraining order that would have blocked work on the site with immediate effect. The court will rule on a second attempt to block construction in early April. In court documents, Tesco said it had secured leases for 71 of its new Fresh & Easy Neighborhood Market stores so far, and that any delay to the completion of the project would cost it more than USD1.9 million a week.