Boutique investment bank Greenhill will conduct a strategic review of the U.S. business. All options are being considered.
"In recent months, we have had a number of approaches from parties interested in acquiring either all or part of Fresh & Easy, or in partnering with us to develop the Fresh & Easy business," the company said.
The results of the review will be announced along with full-year financial figures in April.
Fresh & Easy's woes have added to the problems Tesco faces in the U.K and other international markets. Third-quarter sales at stores open a year or more fell company-wide by 1.3%, as depressed consumer spending in the U.K. and Europe outweighed an improvement in Asia. Tesco's share of the U.K. market is also declining.
The U.S. chain reported same-store sales growth of 1.8%, down from 6.9% in the second quarter.