Tesco is to undertake a review of its US operation which could see some or all of its stores across the Atlantic sold off or closed, it has been reported.
The supermarket giant is due to give a third quarter trading update to the Stock Exchange this morning, with Sky reporting that it will include plans for a strategic review of its Fresh & Easy chain of stores.
The brand was launched in 2007 but has never made a profit, losing £74 million in the first half of this year, which was itself 1.4% improvement on the same period in 2011.
Tesco was unavailable for comment on the report last night, ahead of today's announcement.
The high street giant posted its first fall in profits since 1994 - a 12% drop to £1.7 billion - in October.
After six consecutive quarters of falling like-for-like sales, the UK's biggest supermarket chain eked 0.1% growth in the second quarter of its financial year as its £1 billion turnaround revamp launched.
But the significant investment - spent on a range of initiatives from 8,000 extra staff to launching its Everyday Value range - took a chunk out of its UK profits.
And to compound its woes, Tesco's international arm, once the driving force behind the group, saw profits fall 17% to £378 million as shopping restrictions in South Korea and the eurozone crisis hit Asia and Europe respectively.
At the time, chief executive Philip Clarke said: "I wouldn't say we've turned a corner, but we're definitely on the road."
Mr Clarke, who started his career stacking shelves in a Tesco store, took over from Sir Terry Leahy in 2011, having previously been international and IT director.
