Tesco halts Fresh & Easy openings to ’smooth out wrinkles’
March 30th, 2008, 3:47 pm · 45 Comments · posted by Nancy Luna
Updated 11:15 a.m. Monday with comment from Fresh & Easy spokesman.
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Orange County shoppers looking forward to the openings of Tesco’s Fresh & Easy stores in Fountain Valley, Westminster, Fullerton and Orange are going to have to wait.
The British retailer has announced plans to put the brakes on store openings for at least three months while the new chain looks to improve its first American-based operations, company executive Simon Uwins said. The retailer has opened 59 Fresh & Easy markets since November, including six in Orange County.
Five more are planned in Westminster, Orange, Fountain Valley (two stores) and Fullerton. The Westminster location and a second store planned for Fountain Valley were recently added to Tesco’s West Coast expansion plans.
Uwins, Fresh & Easy’s chief marketing officer, said the company has been opening stores in lightning-speed with 31 debuting over the last 66 days.
“Now we’re pausing for breath,” Uwins announced in a surprise blog posting on the Fresh & Easy Web site.
Tesco, which has gotten off to a rocky start with its new Fresh & Easy grocery concept, will take the next three months to “kick the tires” and “smooth out any wrinkles” before restarting what’s been “described as an opening program on steroids,” Uwins stated.
Tesco is one of the world’s largest grocery retailers. It debuted its first American concept, Fresh & Easy, in November. Stores offers preservative-free products, fresh produce and ready-to-eat family meals in a simple and small store format.
Yet, despite the hype surrounding the neighborhood markets, many people have criticized the format for being too “boring” and not having enough brand-name products. That has led to soft sales in its first 100 days, according to industry analysts.
Fresh & Easy spokesman Brendan Wonnacott said Monday that the slowdown of store openings was not a sudden decision.
“It’s something we have planned all along,” he said.
Wonnacott declined to say what kind of changes the company will focus on during its hiatus.
“We have fun announcements coming up,” he teased.
He did say changes will be made based on consumer feedback — something the British chain has already been doing. A few weeks ago, Fresh & Easy began taking American Express cards after consumers complained that the popular blue card was not an accepted form of payment in stores.
Stores also added a few more prepared takeout meals because shoppers have asked for more variety. Wonnacott also downplayed speculation Monday that the suspended openings meant the end to Tesco’s U.S. experiment.
He said the retailer continues to scout new locations and still has plans to open up to 180 stores in California, Nevada and Arizona. Construction of stores will also continue, including work at yet-to-be completed stores in Orange County. A Fresh & Easy planned for Fountain Valley on Warner Avenue, for example, will be among the first stores to debut when Tesco resumes store openings in July, he said.
Related stories:
- Fresh & Easy now accepting American Express
- Fresh & Easy off to rocky start. A look at the first 100 days
- Tesco beefs up Fresh & Easy executive team
- Comments: Readers rant and rave about Fresh & Easy
- Wal-Mart planning Fresh & Easy copycat
- Tesco set to open Fresh & Easy concept in Southern California
March 30th, 2008 at 6:09 pm
I’m not at all surprised. These charmless, lifeless stores have flopped big time in Orange County. I’ll stick with funky and witty Trader Joes, thank you very much.
March 30th, 2008 at 6:21 pm
Reflecting on this news a bit more, it should be very interesting to see if F&E really does start back up in three months, or if in July it is still all quiet on the Tesco front. Is this really just a rest for F&E, or just the first step in their retreat and abandoment of the SoCal marketplace?
Tesco very clearly didn’t start off well, that’s for sure. For all their self-described market research and study of the SoCal marketplace, they have really missed the mark with Fresh&Easy.
March 30th, 2008 at 10:44 pm
What a complete failure. I don’t know anyone who shops at these stores. Stupid Euro’s think they know what us americans want. I’d wager there will be more pinkberry’s in Socal than F&E’s.
March 31st, 2008 at 12:55 am
I think what this really means is the beginning of the end for Fresh and Easy. What does he mean take a breather and iron out the wrinkles? Clearly he (or corporate) thinks there is a problem. What are they going to do? Revamp the current stores before they open more? I doubt it. My guess this is just double talk to appease the investors and make a slow retreat out of the market.
March 31st, 2008 at 1:02 am
Also, I wonder just how long the landlords of these places they are putting on hold will wait. For example, the spot in Orange is a prime location there on Chapman and Tustin. Will Tesco pay the lease with an empty store? Or are they asking for a reprieve? And if so, how long will the landlord wait before he gives up on them and leases to someone else? These are questions you might want to ask if you do a follow up story about this.
March 31st, 2008 at 6:53 am
No surprise to me either. I was looking forward to their entry into the area as a new alternative. Upon my first visit there, I was very disappointed. Only bought a dozen eggs, not worth the trip. And could you find a more inattentive group of employees at a grocery store? And all the checkout lanes are self-service, just what I don’t want after loading and unloading a shopping cart! I gave them a year in this market, looks like that was too generous.
March 31st, 2008 at 9:35 am
I see a major flaw in their packaging. Meat needs to be shrink wrapped. There is too much air in plastic containers of beef, chicken etc. Oxygen leads to quicker break down and premature spoilage.
Yes, the stores are a cross between Ikea and Smart and Final, relating to the sterile environment. They really need to dress up the atmosphere within. Other than presentation, the food is excellent. I will continue to shop there..
JD
March 31st, 2008 at 9:36 am
I see a major flaw in their packaging. Meat needs to be shrink wrapped. There is too much air in plastic containers of beef, chicken etc. Oxygen leads to quicker break down and premature spoilage.
Yes, the stores are a cross between Ikea and Smart and Final, relating to the sterile environment. They really need to dress up the atmosphere within. Other than presentation, the food is excellent. I will continue to shop there..
March 31st, 2008 at 9:40 am
I do like the concept. I go to the Laguna Hills location and I’ve found their ready-made food to be exceptionally fresh. The expiration date on those food items DOES need to be re-thought. Americans don’t go to the supermarket every day!
But I’ve found the employees to be very helpful and nice. They have even given me a free bouquet of flowers — and cloth shopping bags — just to be nice!
I did worry about the self-checkout lines a bit because of the proximity to Leisure World and the number of elderly shoppers who can’t handle something like this. But that’s when I’ve seen the employees stepping in and running the groceries through for those that need help. And I definitley don’t mind doing it myself; I’m actually quite good at it!
What they do need to tweak is the approval process for purchases over $50. Everytime you spend more than $50, you have to wait for an employee to come over and “approve” the sale electronically. Very annoying.
March 31st, 2008 at 10:40 am
Keep the comments coming. Tesco says they are looking for suggestions to improve the stores. And, they take them seriously. For example, I told them to stop this nonsense where ATM credit transactions of $50 or more must be approved by a checker. That really “slows” down checkout process….apparently, others have complained about this too.
March 31st, 2008 at 10:46 am
The self-serve check-out is fine, if it were reflected in their prices, but alas, that isn’t the case. I also feel like I’m walking into a Soviet Cold-War era market the first and only time I visited this store.
I had high hopes . . . I’m not a fan of the current supermarket industry. I really did want to like F&E. But, thanks to the soulless vibe of this store, Trader Joes and local produce stores continue to get a big chunk of my food budget.
March 31st, 2008 at 10:47 am
Am I alone? I absolutely LOVE the Fresh N Easy in Orange. Wonderful friendly staff, great deals, delicious ready-made, healthy dinners. Wow - I’m so surprised to see the level of dissatisfaction. We are definitely eating healthier thanks to this new chain. I will be crushed if they don’t make it!
March 31st, 2008 at 10:48 am
I love Fresh & Easy’s Poke. Its da best.
March 31st, 2008 at 11:03 am
I love these stores. I used to shop at Trader Joes, but got tired of seeing the recalls on the nightly news and wondering how long I had to live. I prefer quality over some freaky unique food anyway (TJs is good for wine). I also like their packaging… I don’t need to read a novel on the label to know what I want. I also shop at the Laguna Hills store. Very appropriate name… it’s fresh and it’s easy.
March 31st, 2008 at 11:19 am
One trip to Fresh & Easy was our last. It’s the best for Singles or couples with minimal variety. Date night food for sure!!! Missed fresh produce like cilantro and green onions! Can’t shop there because I have five people to feed in my house…not a Quantity place to shop. I wish they’d open more Henry’s. It’s fresh, cheap, and healthy variety is unbeatable.
March 31st, 2008 at 11:32 am
Presentation? Sterile Atmosphere? Who cares about that? I prefer my food service atmospheres to be sterile! The real reason that I only shop at F&E sporadically is prices and product lines. Trader Joe’s has way better prices, and all of their products are singularly delicious. F&E’s prices only begin to be competitive when one uses their coupons, and most of the stuff at F&E is relatively unremarkable because it is largely the same as the Von’s/Albertson’s fare. The only exceptional exception to F&E is that their generic label foods are better than Albertson’s etc. because they have better ingredients. I will continue to go to Tesco during the 9pm hour only because Trader Joe’s will have closed for the night
March 31st, 2008 at 11:37 am
I like this store for some items such as the ready made foods, salads, bread, eggs and other groceries. My problem is that I never buy the meats or the fruits & vegetables. I literally ignore these aisles now. The meats look pretty good but really overpriced and I don’t like the shrink wrapped fruits and veggies which are also not relatively cheap. If you shop around you can find much better prices. Why would I buy shrink wrapped If I can go to other stores or farmer market and buy regular fruit & veggies for cheaper? I never spend more the $50 in this store, so the approval thing is not an issue for me. This store is a good concept and I believe in the long run they will do well but they need to tweak a few things.
March 31st, 2008 at 12:26 pm
It was advertised big on the stock. Anyone know the trade name and how it has changed?
They should have seen the housing market taking a dump as far as timing comming in the market.
March 31st, 2008 at 12:34 pm
I shop for a few things at the LA Fresh & Easy. I like some things, dislike other things. I only buy limited stuff there though so far. It seems the stores aren’t known by very many people. None of my friends even heard about it when I mentioned it. Another blog http://www.laist.com mentioned this same thing about the stores not being known about by very many people.
March 31st, 2008 at 12:55 pm
Glad I’m not the only one here who thinks Fresh&Easy is a sterile, charmless, “Soviet style” format for a small grocery store (Funny soviet analogy Chris!). I don’t need the employees to tap dance down the aisles or make me balloon animals at the checkout, but what few employees they have in the Orange store could stand to be much nicer. Maybe start with making eye contact and saying a word like “Hello”?
Ms. Luna, if F&E leadership really is wanting this type of feedback, you might want to tell them to open up their email inbox once in awhile. After my two visits to the Orange location back in February I sent them a very pleasant, profesional email on their website contact page. I let them know what I thought worked well, and what I thought needed improvement and rethinking. I sent it in the spirit of honest feedback because I was genuinely happy to see a new grocery option in Orange and I was hoping they would do great things. I never heard back from them, not even so much as a form letter thanking me for my time. I haven’t returned to my nearby F&E, and I appreciate Trader Joes even more now.
Apparently Fresh&Easy has a skeleton crew of sullen, bored employees staffing their corporate office just as they do at their stores. How many other customer emails have been left unanswered by a simple form letter of thanks? It’s an unfortunate way to enter an important marketplace.
March 31st, 2008 at 1:42 pm
I used to shop at Trader Joe’s and Henry’s, but have shopped exclusively at F&E since they opened. Although I wish they’d get rid of the major brands….I only buy their F&E branded products…and replace the branded items with more natural food brands, I have not really had a problem with them.
I have only been disatisfied with one item I have purchased from them, and th