Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, March 26, 2008

Unknown and hard in SC

Here is more coverage of Fresh & Easy stores in Southern California, offering some native insights:


Fresh & Easy's mantra seems to be that of "neighborhood." They stress that healthy food should be available where you live, which is a plea more often than not ignored by developers in lower-income areas, like in South Central LA (where last fall it was easier to buy a gun than some fruit & veggies), who finally got their Fresh & Easy in early February. If the concept is localized, it's clear why advertising to a broader customer base would be contrary to their goals, however, not bringing in more shoppers might mean they aren't making bucks.

Back in December, just a few weeks after their stores began opening in California, CNN declared that the outlook wasn't good for the chain:

Despite all the hype, all the planning, and all the expertise of Tesco's management team, it's difficult, at least at this moment, to know if Tesco's California dream will become a reality. Even if the concept becomes a roaring success, as some bullish analysts believe, the journey -- like most in Los Angeles -- will be anything but easy.
Frankly, it seems Fresh & Easy is less "easy" than the name suggests, unless it's in your neck of the woods and you've taken the time to figure out what you can get there. Can they sustain their stores, and continue to open more, as planned? According to CNN, early projections and analysis indicate that by "February 2009, Tesco plans to have 200 stores open. And by 2011, Fresh & Easy could easily have $4 billion in sales from 500 stores."

Easily? Hmm...Have you been to your neighborhood F&E?

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