Tesco halts Fresh & Easy openings to ’smooth out wrinkles’

March 30th, 2008, 3:47 pm · 45 Comments · posted by Nancy Luna, Staff Writer

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. Fresh & Easy Marquee

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.

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Troy says:

March 30, 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.

Post Reply

March 30, 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.

OC resident says:

March 30, 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.

Nick says:

March 31, 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 31, 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.

REOguy says:

March 31, 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.

The Butcher says:

March 31, 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..

March 31, 2008 at 9:36 am

LeeLee says:

March 31, 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.

Nancy Luna says:

March 31, 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.

Chris says:

March 31, 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.

Stephanie says:

March 31, 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!

johnthebaptist says:

March 31, 2008 at 10:48 am

I love Fresh & Easy’s Poke. Its da best.

Sail Away says:

March 31, 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.

RASC says:

March 31, 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.

pete says:

March 31, 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

Mike says:

March 31, 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.

Jeff says:

March 31, 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.

Kelly Martin says:

March 31, 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.

Greg says:

March 31, 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 they gladly took it back, no questions asked.

The self service checkout I can see being a problem, but some of the stores (like the Lincoln store in Anaheim) have it set up as some self service and others where they scan for you.

Also, the times I have emailed F&E from their web site they have answered in lightning speed! Less than half an hour! Perhaps you had a spam filter blocking a reply?

Frank Knapp says:

March 31, 2008 at 1:46 pm

Everyone needs to realize that Tesco’s main objective here is to break into our market while trying to crush supermarkets like Trader Joe’s , Von’s , Ralph’s , etc. This is a British company that will send all of the profits from their stores here back to Britain.
We need to boycott these guys and run them out of town, which is exactly what they did in Britain and elsewhere in Europe when WalMart tried to do the same thing.
Our economy is bad enough, the last thing we need now is for some foreign company to come in and destroy more of our businesses. Don’t buy anything from these creeps!!!

Cynthia says:

March 31, 2008 at 2:40 pm

Let me first start by saying bravo Frank Knapp! I couldn’t agree more. It’s beyond me why good Americans keep navigating toward foreign companies. We can do things better here yet we continue to shoot ourselves in the foot. The employees of F&E are neither union or compensated very well compared to other stores. The F&E stores have so few employees that their economic impact on the community is virtually non-existent. Couple that with the fact that Frank is right that the lion’s share of profit leaves the States and goes back to the UK.

Now, as for the stores themselves… I can’t see the point in ever shopping at these stores. Even if you decide to disregard the fact that they are shipping their profits overseas, what in the world does this store offer that Albertson’s, Von’s, Ralph’s, and Stater Bros. don’t? Nothing. There is no unique concept here. How they ever convinced anyone that their concept is unique is beyond me. You can get ready-made meals at any grocery store (these meals are unhealthy anyway — there is no reason to buy a pre-made meal. I don’t care what anyone says these are not ‘healthy’ meals. The are prepackaged and processed. There are tons of ways to get around that with the laxed labeling standards).

Trader Joe’s, Whole Foods, and the like do offer unique foods and atmosphere. F&E does not. F&E competes with the major chains, not the smaller ones. So again, what’s the point of shopping at these stores? They don’t take coupons and are more expensive than Albertson’s or Stater Bros. And more expensive than Von’s and Ralph’s on a lot of items. So what that they offer these $5 off your order coupons. You buy $100 worth of groceries at F&E and you get $5 off. You buy $100 worth of groceries at Albertson’s and you get the coupons off and the Club savings, which amounts to far more than $5.

Heh, F&E does nothing for me. I agree with the other comments about it being a lifeless, sterile environment. That’s all fine I guess if they actually offered something unique or passed on the savings they are making being non-union and keeping a skeleton staff, but they aren’t. They’re just laughing at you and shipping their profits back to the UK.

adam says:

March 31, 2008 at 3:04 pm

Fresh and Easy is fantastic! It is a great alternative to the normal stores here in orange county. Not to mention that they do not load up their food with preservatives! It seems most things are prepared and packaged in El Segundo, then shipped to all the local stores. Fresh and Easy is just a different format but a weclomed one, its nice having variety, Trader Joes, Mothers, Henrys, Ralphs, Vons, Albertsons, and the random Farmers Markets!

Those of you who are all butt hurt over Fresh and Easy get over it. Nothing you will do or say will ever make them go away. What do you want? More Ralphs????

March 31, 2008 at 3:14 pm

Cynthia

Have you ever check what goes in your food? Obviously you do not, the pre-packaged meals at Ralphs, Vons, Albertsons, contain preservatives and such, the pre-packaged meals from Fresh and Easy, Trader Joes, Mothers, and Whole Foods do not come with preservatives.

The club prices at those chain stores are the ‘normal’ prices, you have to be a member of their clubs to get access to those prices, so they can track shopping habits and send you ads which correspond to what you purchase.

I find checking myself out and not having my grocery store the size of a Costco is rather nice. The dates on the food expire so quick because it is so fresh and is designed to be consumed that day or within the next few days. Fresh and Easy is setup like a European grocer, in that you would visit them on a daily basis.

Everything in Target, Wal-Mart, Kmart, all came from China, do you really think when shopping at those stores your keeping your dollars in this country? When you fill up your gas tank, those dollars will be go back to the middle east and will eventually be used to try and kill us, go figure that one!

Christian says:

March 31, 2008 at 4:11 pm

“When you fill up your gas tank, those dollars will be go back to the middle east and will eventually be used to try and kill us, go figure that one!”

Which is why we need to produce our own oil and gas. And we have the means to do it . . .

cynthia says:

March 31, 2008 at 5:43 pm

Adam, of course I read what’s in my food. Evidenced by my statements
about how they can get around labeling. Somehow F&E has you believing their food is super healthy. Hardly. And I don’t care what they do in Europe. I’m in America. I never said a word about Walmart or Target, etc.

Here’s an idea. Try actually making your food instead of buying it premade.

F&E Fan says:

March 31, 2008 at 6:21 pm

The employees at the La Habra Fresh and Easy are very friendly and helpful. They even find and scan a $5 off of $20 coupon if you’ve forgotten your own. And the daily markdowns in the evenings get me to try items I might not try otherwise.
I LIKE the wide selection of prepared food with minimal multi-syllable chemicals on the labels.
And the location at Beach and Whittier is ideal - Henry’s in Fullerton, Trader Joes in Brea and TJs in Whittier are all a bit of a hike. And the Ralphs down the street closed about a year ago. I used to head to TJs for milk, butter, bread, eggs, “fancy” cheese, and wine. Now I don’t need to drive as far.
But I do think they need to make some adjustments to their product mix. I don’t like the pre-packaged produce. They do seem to run out of sale items. For the most part, it seems their prepared products are geared to singles or two-person households. Not large families.
They have some HITS (beef lasagna, huge burritos, bagel w/ smoked salmon, cheesecakes, sliced bread, tortilla chips, and blueberry scones), a few things just not for me (orange scones, stuffed pasta, turkey sandwich, chocolate bars, stuffed salmon, and corn tortillas)
Fresh and Easy is IDEAL for me, but I know it isn’t for everyone

April 1, 2008 at 8:43 am

Cynthia, Trader Joes is foreign owned too (Germany). Get used to it America!!!

April 1, 2008 at 10:11 am

Mike,

There’s as difference between a small company that started out locally in the 1950s and grew locally into a nice community grocery store and happens to have foreign investors AND a gigantic-send-our-profits-overseas mega grocery/warehouse chain.

What I find interesting about this blog is the amount of people jumping to defend F&E so much. Work for them maybe? Hmmm. The reality is, this company has fallen flat on its face in the American market. They must have been using some kind of European math to come up with their projected numbers and importance. I can see now why the local guys never flinched with all the media over-hype about F&E.

April 1, 2008 at 10:35 am

Cynthia, no hard feelings but if I like shopping at Fresh and Easy, I have no problem defending them. To each his own, if you don’t like the store don’t shop there. I just love having as many options as possible because the more competition, the easier it will be on the pocketbook. Of course there are somethings I don’t like about F&E but that isn’t gonna stop me from shopping there. I will just go in and buy the items I like. Why should all stores be the same? Why should fresh and easy be just like trader joes or any other supermarket, I think it’s refreshing that they are trying something new. Maybe it will be a hit, maybe it won’t but you can’t blame them for trying. For all you know it will close in a year and who cares, something new will come along after them that we can all complain about.

April 1, 2008 at 11:39 am

Exactly!

Thanks for the banter and exchange.

April 1, 2008 at 1:06 pm

Cynthia, I like F&E (see my earlier posting) — and NO, I don’t work there.

April 1, 2008 at 3:44 pm

I don’t work for Fresh and Easy either.
But I do admit to a strange fascination with the grocery industry and supermarket history.
I have heard that folks affiliated with other stores and the retail clerks union have been asked to post negative comments about these new (non-union) stores.

Dan says:

April 1, 2008 at 11:56 pm

Will F& E take over America? No, it plays to just a small niche of people, probably singles. I happen to like them, but being in a family I only buy a few things here. 2 stores in every town overnight with a slumping economy is looking pretty dumb, when TJ’s has taken decades to put them far apart. They have probably figured this out now, and are probably trying to decide which locations to build and which to toss. Whoever is funding it, is finally demanding some accountability.

John says:

April 2, 2008 at 9:19 am

I won’t support these stores for the simple reason that they call themselves “neighborhood markets” but do not support local merchants. We own a sign/graphics business and when I contacted Fresh and Easy to see if we could work with them on the store that is opening in our neighborhood they told me that everything is produced centrally at their corporate facility. If their dollars stay home then mine will also.

April 2, 2008 at 12:49 pm

They seem to be picking a lot of odd locations, almost like they are just experimenting to see what works out the best. For a “neighborhood” store some are in business districts that are not really close to neighborhoods, and some are in low income areas that TJ would never go into. I think they need to better target where their customers are. They might do better near colleges and apartments where young singles and professionals live.

Pat says:

April 3, 2008 at 12:35 am

If you would only give the English people that live in this country what they have been waiting for for many years Im sure your business would pick up. Why not get at least a couple of counters sporting English products It cant be that hard to do other countries do it and make out quite well. Most of us travel a good distance to get the things that we use for our cooking other than that ,some kind family member will send it to us.
Still hoping your company will think about it, myself and my friends would be very gratefull.

Jay says:

April 7, 2008 at 1:36 pm

My favorite part of shopping at F & E is there is nobody else in there shopping. Great for me….bad for the investors. Doubt they’ll be here this time next year. Back to the UK….take some of the sausage to replace those lifeless bland bangers over there. Bye-bye.

Tsu Dho Nimh says:

April 17, 2008 at 10:04 am

AZ stores: I bought their house brand wine, and it sucked - 2 bottles down the drain, and the other two barely drinkable. As for the fresh produce and ready to heats, I can get equivalent products for cheaper at local supermarkets and for the same price at Whole Foods.

I like the bright lighting, but the produce was unimpressive, the layout confusing, and the self-checkout requires staff assistance if you buy alcohol or (I have heard) more than $50 of goods.

Jane says:

May 4, 2008 at 8:25 am

I shop at the Fresh & Easy in Orange, and I really like it!
Since our first trip there, we have been shopping almost exclusively at this store.

We used to drive all the way to Tustin to shop at Trader Joes, Whole Foods and Albertsons because it took 3 types of stores to get what we needed, and those 3 were in close proximity. (Now not an option since WF moved to Irvine).

Now with F&E we can find plenty of items that do not have high fructose corn syrup, or hydrogenated oils in the ingredients without a struggle, and my husband can grab his favorite diet soda , and we can buy toilet paper at the same place, and we are out the door quickly.

The small format is very appealing/easy to deal with, and the vast convenience/proximity of this location to my home is also great! I can’t remember when I last went to Trader Joes.

Also, I love the taste and freshness of the pre-prepared foods.

It really is Fresh and Easy!

Jon says:

May 4, 2008 at 9:00 am

We love F&E in my house. When the store at Orange and Main first opened we tried it out and were somewhat perplexed by the format, but once we gave fair shake we grew to love the ease and convenience of shopping there.

We love their store-branded items and really enjoy the fact that they carry brand-name stuff as well. I like being able to get Diet Pepsi and organic gluten free bread at the same location and at a low price. The self-checkout is a breeze and the selection aint bad either.

This particular location is well placed because there is a void of TJs, Henry’s and Whole Foods in the area. We shop there almost exclusively and will be very sad if this is the beginning of the end for the freshman grocery chain.

PS: I am surprise sales are light – when we go into the Orange location it’s always seems quite brisk in sales and customers.

Arturo Bandini says:

May 8, 2008 at 3:31 pm

Fresh and Easy treat their suppliers and employees like sh*t, the food sucks, it’s over-packaged and expensive. The Brit expats are a pack of arrogant sods: “We’ve done the research, we know we are right.” and “It’s only 1 billion pounds; if it fails, it won’t affect us” (to paraphrase). I’ll be the first in line to put them back in the boats and send them over the pond. The food sucks, is over-packaged and expensive. Good riddance limey’s!!! P.S. Uni Sucks!!!

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