Fresh & Easy Markets in SoCal: Unknown & Hard?

freshandeasyGP.jpgWe were all abuzz a few months back when the first wave of UK import grocery stores called Fresh & Easy opened across the Southland, offering promise to under-served neighborhoods of accessible and affordable healthy food and low-cost groceries in a pleasant and somewhat upscale atmosphere.

Now that the markets have had the chance to settle in, research analysts are scurrying to look at how they're doing, and the results are mixed. According to the Pasadena Star-News, "Piper Jaffray's Mike Dennis suggested that Fresh & Easy, the U.S. division of British food giant Tesco, is about $70 million behind sales expectations." Of course, Fresh & Easy begs to differ, saying that the public response to the stores have been encouraging, and that they're doing well, although their rep "didn't offer specific numbers."

With the cost of food on the rise, and the general economic downturn plaguing wallets and businesses alike, consumers are curbing their spending, and it's possible that groceries are being bought on an as-needed basis.

So is that why folks aren't flocking to their nearest Fresh & Easy?

Maybe, but, the problem might be something happening before the consumer even heads to the store. Because the markets have somewhat of a "low profile" shoppers might not even know what they're all about, and tend to categorize them as comparable to Whole Foods, where the eats might be healthier but the prices are also higher. They don't do any advertising, and seem to be relying on word-of-mouth and press coverage to attract customers.

Their website tells us they have a simple consumer demand to meet: "People want fresh and healthy food choices. People want things to be easy."

But how easy is it when those people don't know that the stores are an option?

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?

Photo of shoppers at the Fresh & Easy in Glassell Park by Andy Sternberg/LAist


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Comments (19) [rss]

Can't wait for the one in Van Nuys to open...
...although I have no idea what to expect!

F&E is awesome. Very easy and fairly cheap I guess. I go to the Glassel Park one. In and out fast since the store is on the smaller side. You dont need to go down a million aisles. I love it.

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that place is rough. it has nothing on trader joes in terms of quality, price and even selection.

they have more produce than trader joe's, more stuff that you could grab and eat outside the store than trader joe's, and more household stuff than trader joe's.

we all love trader joe's but come on, you always have to go to the "real" grocery store on the way home to get soap and garbage bags. f&e is a middle ground.

oh, also i'd rather self check out at f&e in glassel park than wait in line at trader joe's in silverlake for 20+ minutes.

Frankly the thought of purchasing anything from Tesco and its subsiduaries makes me shiver in repulsion.

In much the same way as certain vendors have here in the US, Tesco pretty much single handedly destroyed whole swathes of British culture by putting entire towns out of business with its "hypermarkets".

Ive not shopped at Fresh & Easy, nor have I seen one but the thought of supporting Tesco and their none stop destruction of food and beverage manufacturers across the globe makes we want jack it in and shop at Walmart - you know, for the ethical fullfillment.

Quality Read: Shopped - The Shocking Power Of British Supermarkets

I like Fresh and Easy so much better than Trader Joes or Whole Foods. They have a great selection of fresh produce and meat at much cheaper prices, yet I can still get a 12-pack of coke instead of having to settle on pomegranate and prune spritzer (or any of the other ridiculous and expensive specialty items available at TJs and WF that I'm not really looking to buy).

I also use the Glassell Park store, and I'm generally in and out of there in less than two minutes. In fact, I think I'm gonna go there right now! Mwaha.

F&E is largely overrated. I like my new local store mainly because its usually empty, and its within a quick walk. But the selection is incredibly sparse.
Which isn't to say they don't have some good stuff at decent prices... but unless they plan to expand their shelves I'll be spending most of my grocery money at Ralphs and TJs.

Seriously, that is the great thing about it. You can get in and out of there so quick. Unlike ANY TJ's where the parking lot is as big as my driveway and the lines are always packed.

Whatever, everyone don't go, more room for us!

Their website: "fresh&easy believe in making fresh and high-quality food accessible in every neighborhood..."

In Los Angeles city limits alone, there 180+ neighborhoods. Man, that's going to be a lot of f&e's ;)

I can only echo what's been said above. Definitely a middle ground...no lines like Trader Joes, good selection, decent prices. I just wish there was one closer to west la..I think the hollywood one is the closest, but that's farrrr.

We publish and independent blog called Fresh & Easy Buzz.

www.freshneasybuzz.blogspot.com

The blog covers everything anout Tesco and its Fresh & Easy Neighborhood Market small-format grocery stores.

Rather then comment here, as it would be long, on Fresh & Easy, I suggest you take a look at the blog. There's lots of analysis, inside stories, and various pieces about the stores current sales, problems and the like on the blog.

There's also suggestions from grocery retail vets about what Tesco can do to imporove the stores.

I will make a couple specif comments here later--but wanted to let you folks know about the blog after I read your post.

I've seen a Fresh & Easy banner on the new plaza they are trying to build out around my home, at intersection of Grand/Valley in Walnut. I have the same guess... I thought they were like Whole Food, organic buzz kinda shop. I wonder if they'll survive... Vons, Albertsons, Stater Bros are all around in Walnut

A Fresh & Easy just opened next to where I live in Hollywood. I used to stop in several times a week while walking home from work and really loved the store.

I recently received a notice in the mail from Ralph's grocery store listing several unnerving 'facts' about the quality of Fresh & Easy meat and produce.

I'm vegetarian, but there were several things that made my stomach turn. It basically said to boycott the Tesco chain because they have received several citations in the past for altering their expiration dates and incorrectly labeling food 'Organic.'

I haven't shopped there since, but because the location is so convenient for me - I may start buying only name brand products.

yeah, I was excited by the prospect of the Glassell Park store, but after a few visits, I'm not so thrilled. It's not so easy if you need to really shop for a lot of items. It's just okay for convenience plus, as I'd call it. Food isn't so fresh and the help isn't so helpful. It's an okay business model. But that's about it. I think I'll stick to Traitor Joes or Vons. I'm boycotting Whole Foods since their nasty take over of Wild Oats....

Emoney, I'd love to have seen what Ralphs sent you! What an interesting business tactic...

One thing, though, about the issue of "organic" and labeling and regulations: There aren't actually any real rules or standards that apply. What someone calls organic might not be to someone else; it's not standardized, regulated, or enforced. So Ralphs may well be capitalizing on the public's desire to have "real organic" food, when, really, anyone with a label-maker can call something "organic" in the first place.

It's been really interesting seeing everyone's input on F&E markets. I think I would go to one if one was more convenient to me, but still find myself going here and there between WF, TJ, Vons, How's, and farmers' markets (when possible).

I shop at the Hollywood Blvd location and I'm NOT impressed with their merchandise.
The store feels like a 99 cent store to me, bad lighting and a lack of healthy choices.
The pre-packaged products are incredibly bad for you, check out the sodium on ANY of their packaged items.
I wouldn't care if the store closed tomorrow.

I'm particularly uncomfortable with the increasing trend towards retailers without employees. Wal Mart's been slowly introducing that kind of sleaze into the mid west so it's no surprise to me that Wal Mart UK edition does the same thing.

People, you're also forgetting how entirely shitty Trader Joe's parking lots are. They seem designed to create logjams and confusion.


Hi, I am a sutdent studying MSC Marketing at University of Birmingham(England).
Now I am working on my dissertation which is about Fresh&Easy's entry into America.
Hope you can help me to do the questionnaire, please.
Here is the link to the questionnaire which will only be used as an academic research.
http://www.my3q.com/home2/234/jjessie0526/68302.phtml
Thank you very very much for your kindness!!
Jessie

Hi, I am a sutdent studying MSC Marketing at University of Birmingham(England).
Now I am working on my dissertation which is about Fresh&Easy in America.
Hope you can help me to do the questionnaire, please.
Here is the link to the questionnaire which will only be used as an academic research.
http://www.my3q.com/home2/234/jjessie0526/68302.phtml
Thank you very very much for your kindness!!
Jessie

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