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LONDON -- A recently launched media campaign by British retailer Tesco for its U.S. division, Fresh & Easy Neighborhood Markets, is causing a stir as published reports state it is a signal that the chain may expand.
The advertising campaign launched last month and is based on saving money by keeping things simple, according to a report in the Financial Times.
Sources told the paper that with roughly 125 stores, launching a significant campaign now made sense, while others told the Times Tesco had chosen to go ahead because of signs of economic stability in the U.S.
The campaign is likely to cause speculation that Tesco may start expanding the chain again after its growth in northern California was delayed, the report stated.
Tesco has continued build its presence in northern California, and also completed work on a distribution center in an industrial park in Stockton to service new stores there when they open, the newspaper reported.
However, analysts forecast that the chain is still operating at a loss. Clive Black, analyst at Shore Capital, predicted losses from Fresh & Easy of about 80 million pounds in the six months ended Aug. 22, the report stated.
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