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Fresh & Easy sales in a slump, consultant says
February 24th, 2008, 3:00 am · 15 Comments · posted by Nancy Luna, Staff Writer and Blogger
Fresh & Easy Neighborhood Market shoppers in Orange County have wondered the same thing for weeks: How can the new British-based grocery stores be making any money?
Many customers often comment that the stores are empty. Some are also put off by perishable goods with labels showing items expiring on the same day of purchase.
Jim Prevor, a veteran supermarket consultant and founder of the Perishable Pundit trade magazine, said a litany of consumer miscalculations have hurt sales at Fresh & Easy. British grocery giant Tesco opened its first American stores under huge fanfare in November, including one in Anaheim.
Prevor — a well-known supermarket industry insider and food writer — estimated that each store is averaging weekly sales of $50,000. That’s well below the goal of $200,000 projected initially by Tesco, he said. His data is based on dozens of interviews with Fresh & Easy managers, customers and suppliers in California, Arizona and Las Vegas.
Prevor, who once operated supermarkets in New Jersey, also interviewed rival supermarkets to compare sales data to Fresh & Easy.
Fresh & Easy spokesman Brendan Wonnacott declined to comment on Prevor’s findings, released recently during a Citibank-sponsored conference call with British investors.
Though Fresh & Easy is not talking about its financials, Prevor and shoppers have noticed subtle changes in the now 50 stores open in three states, including six in Orange County. For example, late in the day stores have been slashing prices on fresh produce and meats.
At the Fresh & Easy store in Orange, a 16-oz. carton of stemmed strawberries was on sale for $5.24, down from $6.99. A small cut of flank steak (shown, right) was more than a $1.25 off, selling for $3.94 on Thursday night.
To create goodwill, store clerks often give customers “$5 off” coupons at the checkout line. Some have even given $10 off entire purchases.
“They’ve been doing all kinds of experiments to try and deal with” slow sales, Prevor said during a Friday phone interview from his offices in Boca Raton, Fl.
Stay tuned for more from Prevor — and perhaps Fresh & Easy — in the next few days.
Talk to me: I’m looking for Fresh & Easy shoppers willing to be interviewed. Did you try the store and give up? Or, do you love it?
Email me your full name and daytime contact information. Send to Nancy Luna at nluna@ocregister.com
Related links:
- Comments: Readers rant and rave about Fresh & Easy
- Wal-Mart planning Fresh & Easy copycat
- Tesco set to open Fresh & Easy concept in Southern California
February 24th, 2008 at 1:02 pm
I LOVE Fresh & Easy! There pre-made dishes are BETTER than what most four star restaurants serve around OC, and better yet, the food is extremely reasonable in price and much healthier than fast-food.
Unfortunately, their choice in locations might be a factor in their slump.
Fresh & Easy is perfect for upper-middle class families and executives on the go, and with busy lives. Unfortunately, I live in Laguna Niguel, and the closest location to me is a 20-minuet drive to North Laguna Hills (too far to just drive to grab a quick healthy dish on the go).
I think their best bet would be to dump the commercial grocery-store goods (as their selection is just not large enough to avoid a regular market) and open some smaller establishments with just their brand-name goods in more neighborhood locations.
Either way, Fresh & Easy BLOWS AWAY Trader-Joes or Henneries Market, when it comes to pre-made meals ready to heat-up and eat!
February 24th, 2008 at 1:33 pm
I love Fresh & Easy and I can’t until they open their Chino Hills store. It’s actually helpful to know that we can get meals at a discount because they are reduced on the day of expiration.
February 24th, 2008 at 2:24 pm
I’m not the least bit surprised that Fresh&Easy is crashing and burning in the OC marketplace. I tried the Orange store on Chapman on two separate occasions recently, and I don’t think I’ll ever go back.
The place was sterile and boring and bland and overly corporate. My dentists office has more charm than the Fresh&Easy in Orange. They’ve done nothing to try and fit in with the local culture and community. They rely entirely on technology to handle the people-skills, which is a huge mistake. On both occasions not a single human being spoke to me, acknowledged me, or interacted with me. Even the Sample Hostess in the dairy aisle just stood there silently staring at her feet! The whole place is creepy and dull.
The prices were competitive, but compared to the oodles of charm and wit and zippy service I get for the same price at Trader Joes, why bother with Fresh&Easy? It’s like shopping at the county morgue.
I even emailed them with my thoughts, both good and bad, after my two visits to their new Orange store, and I have never heard back from their corporate office; not even so much as an automated form letter thanking me for writing. Everything else in their stores is automated and devoid of human interaction, so you would have at least thought a form letter from the corporate office would be possible.
I likely won’t return to Fresh&Easy until they get a personality bypass.
February 24th, 2008 at 3:13 pm
I like Fresh & Easy. The people who work in Anaheim are nice. I like the food and selection. I hope they will be more successful. They just chose a bad time to launch their stores (bad economy).
February 24th, 2008 at 3:57 pm
Troy, I agree with you, the Orange store looks like its’ from from Orwells 1984, kinda feels like a British government food surplus store. The Ralphs across the street has a killer deli with warm foods, sure a little more expensive but a lot more inviting. I am a single guy and found the place spooky.
February 24th, 2008 at 5:02 pm
I was looking for a complementary to the organic store on Paseo de Valencia & El Toro, so I tried Fresh & Easy in Laguna Hills this week; but it was a huge disappointment. Maybe the chain should be called Sterile & Boring as it truly had the feel of an uninspired and impersonal miniature “big box” store. They should emphasize fresh produce and imports. Bobbyc, give me a break and discard your fantasy! There are more than enough upper middle class people in Aliso Viejo, Laguna Hills, etc to support the store.
February 24th, 2008 at 5:21 pm
They totally blew their site selection. They went to places such as Stanton, Anaheim, and Buena Park. They should have gone to irvine, Ladera Ranch, Laguna Hills, etc. They totally misread the local demographics. Shoppers are higher income people who have the smarts to be choosy about how they spend their money. Lower income people end up spending too much on food by buying it at convenience stores and places like that.
I used to live in England and enjoyed Tesco’s approach over there. It will work here also if they open in Coastal ans=d South orange County.
February 24th, 2008 at 6:17 pm
Although I shy away from offering free promotions for other businesses and will not name this other store directly; I will say that the store that is located on Paseo de Valencia is not your Father’s. I like the quality of their produce; variety of goods; hot entrees; vitamins & other supplements; and general ambience. I also shop there at least 4 to 5 times per week; frequently stopping there on my way home from work. South County could easily support upscale produce stores.
February 24th, 2008 at 6:42 pm
I went to the store in Laguna Hills once and am never going again. The prices were higher than at Trader Joe’s, the shelves were half empty and the selection was far from impressive. I found nothing to like there, which is quite a disappointment because I was waiting for the store to open.
February 24th, 2008 at 10:59 pm
outsider, the George Orwell 1984 reference is a perfect analogy for the Orange store! Drab and sterile and devoid of almost any personality. I wonder if the rest of their stores are as lifeless as the Orange store?
I’m a single guy too, I’m not ugly and I’m very friendly and approachable, but not a single Fresh&Easy employee said one thing to me on my two visits. The place is silent and somber and no one appears happy to have you shopping there. I don’t need the employees to tap dance and make me balloon animals, but a simple smile and a “Hello” would go a long way in that morgue-like environment.
February 25th, 2008 at 12:29 pm
I’ve always loved the convenience of a downsized market so I love F&E, especially their great prepared foods (my fave-pot stickers). This “new” way of shopping daily for fresher items, will take some time for people to catch up to. Costco has given us a “stockpile” mentality. Those who still feel a need to have their groceries rung & bagged for them will continue paying the supers for this service. People who demand the finest will still go to Whole Foods. But Kudos to F&E for developing a niche somewhere in between and delivering this at a budget price. I’ve been shopping at the stores about once a week since they opened and they always seem pretty busy when I’m there. The staff is always super friendly. Personally, I love TJ’s, but it’s nice to have this new option as well, so I’m going to give them a chance. Hope others will too!
Regarding the comment here about freshness, when you’re dealing with fresh foods you’re always going to have some problems figuring out how much to order. But, I’d rather have them overstock than under stock. I notice F&E takes a different approach to Trader Joes, where they put the “expiration” date instead of the “born on” date. I’d say F&E is more honest, since I’ve bought quite a few old salads etc. that where still on the shelf at TJs. It’s not so easy to launch a new brand, and they’ll get it down better with time.
February 25th, 2008 at 1:54 pm
I visited the La Mirada store, and do not understand what all the hype is about. I walked up and down every aisle, and didnt find one thing to buy. Overrated.
February 26th, 2008 at 2:04 pm
The first time I went to Fresh and Easy on Chapman, I loved it. The food was great and easy to pick up for lunch.
The next time I went with the idea of taking the food home for dinner. I started reading the labels on the fresh prepared foods. As delightful as the selection was, the fat and sodium content was higher on almost everything than I generally eat in a week. I’m sorry to say, I won’t be going back too soon.
I bought their Pomegranate White Tea and it is wonderful. I will go back for more of that.
March 31st, 2008 at 4:45 pm
I have been to F&E twice and not a sole is in the Laguna Hills location. I just don’t get it!!! I feel like I am shopping at a military commissary or a homeless food bank. Why would I shop in a place that has NO customers. They can’t be selling anything, so the stuff can’t be that fresh… Unless they dump 3/4 of their supply DAILY.
Thank god Trader Joes is opening in Aliso Viejo at the new Aliso Viejo Commons center!!!
April 1st, 2008 at 10:16 am
Aaron,
I agree. The couple of times I’ve been in the Orange location it’s like shopping at something out of a David Lynch movie. NO ONE is in there. I fully agree that they must be wasting SO much food. They are either selling rotten food or throwing gobs and gobs of it away.
I suspect it’s a little of both. Their food ain’t all the fresh and they are throwing away a small nation’s food supply worth of food every day.