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Tesco U.S. facility needs environmental review
LOS ANGELES (Reuters) - Tesco the world's third-largest retailer, said on Friday that a recent court decision requiring its only U.S. distribution facility to comply with California environmental regulations would not set back its plans for expansion in that market. California Superior Court Judge Thomas Cahraman of Riverside County ruled on Wednesday that Tesco's distribution centre in Riverside, California, should have been subjected to a review under the California Environmental Quality Act and that the company should "take all actions necessary to bring the project into compliance with that Act." Tesco, which opened its chain of Fresh & Easy grocery stores earlier this month in Los Angeles, said it did not expect the ruling to impact its fledgling U.S. business. "We will review the ruling to understand what further compliance might be necessary but there is nothing in the ruling handed down that we believe will affect the operation and further rollout of the business," it said in a statement. Last year, Fresh & Easy received an exemption from the environmental review from the authority charged with developing the land on which the distribution centre is located, according to court papers. That move was challenged in court by Health First, a group of area residents who say they are concerned about land use and environmental quality issues. "The public agency in this case did not proceed in a manner required by law, because it issued a notice of exemption for a project that is not exempt," Cahraman wrote in his decision. Fresh & Easy's distribution centre is crucial to its U.S. expansion plan, with the potential to serve up to 500 stores. The facility prepares more than 100 food products, including the ready-made meals that are central to Fresh & Easy's offerings and what its management believes differentiates it from local competitors like Trader Joe's. No one has commented on this article. |
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