A proposed change to liquor laws in California, the hub of Tesco’s Fresh and Easy division, could mark “the beginning of the end” for the loss making chain, MF Global analysts said.A bill proposed by California Assemblywoman Fiona Ma would ban sales of alcohol at self-service checkouts.
Tesco has 126 stores in California and is the only grocer in the state to use self-service tills.
The extra staff needed to handle liquor sales would put more pressure on profit margins, which were already very weak because of high fixed costs and a reliance on discount coupon.
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