Tesco to Continue Construction After Injunction Denied

EL SEGUNDO, Calif. -- Tesco USA here is on schedule to open its Southern California distribution center in the third quarter of this year, despite an ongoing legal challenge by an environmental group, Simon Uwins, chief marketing officer, told SN yesterday. "I'm glad to say we can continue with construction and are moving ahead,” he said after a U.S. District Court judge rejected an effort by the environmental group to obtain an injunction to halt construction while it pursues its efforts through the legal system. A trial on the merits of the case is scheduled to begin in late June, with an unfavorable verdict potentially forcing a permanent halt to construction of the 820,400-square-foot facility. Uwins told SN that Tesco has not yet decided on where it will open its first Fresh & Easy Neighborhood Market. “We have a number of sites in the pipeline, but which one will open first is difficult to tell, given all the hoops you have to jump through,” he said. The lawsuit against Tesco was filed late last year by Health First, which subsequently filed suits earlier this year against two of Tesco's United Kingdom-based suppliers who planned to open distribution centers in the same business park as the Tesco facility, and also against March Joint Powers Authority, the agency that oversees civilian development of the property where the facilities will be located, on the former site of March Air Force Base. The suits claim the companies have not addressed the potential pollution and traffic impact their businesses would generate. -- Elliot Zwiebach