Tesco signalled an embarrassing retreat from the US today and admitted a key part of its performance in the UK was still not good enough.
The supermarket giant, which recently reported its first drop in profits in 20 years, confirmed it was launching a review of its US operation Fresh & Easy that could see the chain sold off.
Tim Mason, who ran the US business and has been with Tesco for 30 years, will leave the company.
In the UK, Tesco said its sales fell back into the red in its third quarter after a poor non-food performance held back improvements in its grocery arm.
Chief executive Philip Clarke admitted the non-food performance was "not good enough" as the group reported a 0.6% fall in like-for-like sales excluding VAT and fuel in the 13 weeks to November 24.