Fresh&easy
From Wikipedia, the free encyclopedia
- The correct title of this article is fresh&easy. The initial letter is shown capitalized due to technical restrictions.
| fresh&easy | |
 |
|
| Type | Grocery |
|---|---|
| Founded | 2007 |
| Headquarters | El Segundo, CA |
| Industry | Supermarket/Retail |
| Products | Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor |
| Website | freshandeasy.com |
fresh&easy is a future chain of grocery stores on the West coast of the United States, presented by Tesco, the world's fourth largest retailer.
Contents |
[edit] History
[edit] Tesco's United States expansion plans
On February 9, 2006 Tesco announced that it plans to move into the United States by opening a chain of convenience stores on the West Coast (Arizona, California and Nevada) in 2007 named Fresh & Easy.[1] The initial planned capital expenditure is up to £250 ($436m) million per year. CEO Terry Leahy stated, "We have committed serious resources to developing a format that we believe will be really popular with American consumers". Investors responded with some scepticism to the project, with a small fall in the company's share price on the day of the announcement.[2] In May 2006 the Los Angeles Times reported that Tesco had purchased a 130 000 m² (1.4-million-square-foot) distribution centre in Riverside County, California, near Los Angeles, and planned to acquire another in Phoenix, Arizona. The stores are expected to be around 1400 m² (15,000 square feet) - good sized supermarkets in many countries, but a rather odd segment in the U.S. market.[3]
[edit] First store
Tesco has announced that it has taken a lease on a 3000 m² (32,500 square foot) former Albertsons store in Glassell Park (Los Angeles),[4] suggesting that the company might be planning stores twice as large as previously thought. However, analysts noted that Tesco could divide the Glassell Park site or bring in a concession so that it would be left with a store in line with its plans for a convenience chain.
"It is a strategy of developing local scale. They want to build enough market share to matter," said Darrell Rigby, who heads the global retail practice of consultant Bain & Co. in Boston. "The biggest question for competitors is how many Tesco formats will show up here," Rigby said. The size of the Glassell Park lease indicates that the British retailer most likely has a multifaceted approach to capturing a slice of the U.S. market, Rigby said.
Both Albertsons Inc. and Kroger Co.'s Ralphs chain have closed supermarkets in the Glassell Park neighborhood, leaving the community with one independent grocer and a smattering of small convenience stores. "This has forced us to shop outside of our local area," said George Brauckman, president of the Glassell Park Improvement Assn. If Tesco "is clean and has fresh food and produce, it will do very well," Brauckman said. "People will like the idea that Glassell Park is the location for this new venture."
[edit] References
- ^ Tesco to enter United States. Retrieved on 2006-03-13.
- ^ "Tesco plans foray into US market", BBC, February 9, 2006.
- ^ Britain's Tesco to Open Its First U.S. Stores in Southland, Los Angeles Times 20 May, 2006. [1]
- ^ Tesco Info (PDF). Glassell Park Improvement Association. Retrieved on 2006-12-23.
