Tesco invasion ends in retreat - The Packer

Tesco invasion ends in retreat

09/11/2013 05:30:00 PM
Tom Karst

Tom Karst Fresh & Easy is over and out.

Coverage from Produce Retailer/The Packer

From the Guardian: Tesco pays out to rid itself of U.S. chain Fresh & Easy

From the Telegraph: Tesco sale of Fresh & Easy wins city backing

Meanwhile, word is trickling out about the Fresh & Easy store closings.

From SFGate

From: Phoenix Business Journal

It is interesting what the news release about the purchase said about the future of the stores. From the release:


Ron Burkle, Managing Partner of Yucaipa said, “Fresh & Easy is a tremendous foundation. Tesco should be applauded for giving their customers an affordable, healthy, convenient shopping experience. Its dedicated employees and great base of customers give us a solid starting point to complete Tesco's vision with some changes that we think will make it even more relevant to today's consumer. We plan on continuing to build Fresh & Easy into a "next-generation convenience retail experience," providing busy consumers with more local and healthy access for their daily needs."

 

What does that paragraph actually mean? I don’t think the Fresh & Easy banner will be long for the world after the sale is finalized.

California-based retail analyst Ed Odron said he believes that Yucaipa Group will make headway with the stores. They will have a better understanding of what customers in those areas want,” Odron said. While some store locations may be spun off to Subway or similar franchises, Odron believes most of the Fresh & Easy stores will remain food outlets, though not under the F&E banner.

“Customers won’t understand ‘under new ownership,’ “he said. “It would be wise to change the banner.”

Odron was surprised Aldi didn’t show much interest in the Fresh & Easy stores. Dollar General also may have also gained from acquiring the stores, he said.


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