January 11, 2012

Tesco to Shutter 12 Fresh & Easy Stores

From the Tesco perspective, the press coverage generated by the announcement that it has decided to close 12 Fresh & Easy stores may seem a bit overblown considering the chain is looking to open 25 new units by the end of March.

On the other hand, Fresh & Easy’s struggles in the U.S. have been well documented. Last year the chain closed 13 units and Tesco CEO Philip Clarke has said he is looking for the chain to reach break-even at some point in 2012 or 2013.

Fresh & Easy has said that it needs to get to 300 units to reach break-even. The chain currently has 184 locations in Arizona, California and Nevada.

Tesco will report its annual results in April. Through the first six months of its fiscal year, Fresh & Easy reported a loss of $112 million on sales of $470 million. According to the company, the loss was 23 percent less than for the same period last year.

As in the past, Fresh & Easy is presenting the decision to close stores as a temporary move.

“At this time, there is simply not enough growth in sales and customers at those stores to keep them open,” Fresh & Easy spokesperson Brendan Wonnacott told the Los Angeles Times. “We will re-open them when economic and business conditions warrant.”

Discussion Questions

Discussion Questions: What do you read into the latest store closing and opening announcements from Fresh & Easy? Is the chain making the necessary improvements to get it to break-even by next year?

Poll

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Steve Montgomery
Steve Montgomery

In my experience, temporary closings are usually permanent. Fresh & Easy continues to make adjustments to increase the likelihood of success, such as adding its Clubcard loyalty program, but as many have found, the U.S. retail food market is very well established. I see more a brighter future for its Express format than the current Fresh & Easy offering.

David Livingston
David Livingston

I was in a restaurant awhile back and there was a sign that was always on the wall: “Tomorrow’s Special – T-bone steak dinner – $1.95.” That reminds me of the Fresh & Easy stores. Break even will always be two years away. So in two years, break even will be coming in another two years. Even if some day they do break even, I doubt it will be permanent and they will never erase their accumulated deficit. That has to be approaching a billion dollars by now.

What we do know is that Fresh & Easy came out of the box a big flop. They took B locations and operated some very low volume and low sales per square foot stores. They truly had no clue what they were doing. Sure the stores were cute, they tried some new things, they were trying to be “Green” and politically correct with the food desert crowd.

But success is measured by dollars, not how cute or politically correct the stores are. Their press releases were full of double talk trying to downplay their failures, often saying they were even pleased with their progress. Over time they closed the worst stores and started throwing mud at the wall to see what sticks. Not much has stuck but they have improved. Obviously with their huge financial losses and accumulated deficits, they will probably never get their money back. If and when they do become profitable, competitors like Walmart will come up with a better mousetrap, keeping Fresh & Easy unprofitable.

One thing for sure, expect those press releases full of double talk good news to keep coming.

Ben Ball
Ben Ball

That Tesco/Fresh & Easy is a normal retailer. With an abnormal penchant for doing what is necessary to move the business forward — without paying a lot of attention to what “they” (oops, is that “we”?) say.

Gordon Arnold
Gordon Arnold

Engaging economic depression is a noteworthy effort. In their efforts to work this out, I am sure Tesco has found out just how unreliable current demographic information is. If their executives can learn to get ahead of this problem, their goals will be surpassed. One method I have found to be interesting is looking for tax solvent communities with a below average level of underwater mortgages. This is a safer bet than real estate values and average working household incomes.

Mark Heckman
Mark Heckman

Folks like David Livingston and me (that have site-location analysis experience), know that much of the success or failure of a store has to do with how compatible the format and offerings are within the surrounding trading area and existing competition. Fresh & Easy is no exception. To that point, some Fresh & Easy stores that I have visited were placed in rather questionable locations such as rehab shopping centers in trading areas that did not seem to be ideally suited for this fresh, grab and go format.

I realize these comments are anecdotal and without the benefit of knowing the specifics surrounding each of the stores that are closing, but my point is that closing stores can be more about locational nuance then about the store’s concept and offerings in general.

I would suspect that Tesco will learn from some of these early site-related mistakes and continue to grow this concept in locations that are more compatible with those successful Fresh & Easy stores operating in the U.S.

Richard J. George, Ph.D.

Rule #10 in my strategy book is “Advance and Secure.” Step out but make sure you have a firm place if you need to step back. Also, rule #8 “Concentrate Your Resources” comes into mind. It is not the total resources available, only those at the point of attack that matter. In addition, the military used Retreat as a strategic option. All three of these concepts come to mind when evaluating the latest Tesco decisions.

Tesco appears to be using a strategic retreat from the under-performing stores as the basis for rules #8 and #10. By closing selected stores (Retreat) and concentrating resources (Rule #8) towards new and/or better performing stores, allows Tesco to strategically advance and secure (Rule #10).

The goal here is to out-think versus outspend the competition and to focus on winning the war versus winning individual battles.

John Boccuzzi, Jr.
John Boccuzzi, Jr.

When Tesco announced their move into the US with Fresh & Easy, it made front page headlines. Needless to say, the results have been underwhelming to date. I have toured the chain and the format is beautiful. As stated in the article, the traffic is very light. Why? The store name states what they stand for “Fresh and Easy.” Are US consumers still looking for “Cheap and Big?” I doubt Tesco will give up on the concept any time soon. They just need to figure out the right locations to place these stores and then help educate consumers that the concept is worth shopping.

As people continue to look for healthier solutions Fresh & Easy will find a home in the US market.

Ed Rosenbaum
Ed Rosenbaum

Tesco has their focus set on profitability and/or break even. Only time will tell even though their task is going to be difficult. I do not fault them for closing locations having little hope of meeting their goal.

Kevin Price
Kevin Price

Good for Tesco management to continuously tweak, shutting underperforming stores proactively rather than waiting until widespread, wholesale disaster strikes, forcing closure of ALL stores, as so many retailers have done (Borders, Circuit City and many others immediately come to mind). They’re a breath of fresh air!

That being said, they’re still sticking with a concept that is questionable, at best. In this great, expansive land we live in (relative to Europe), can they really make this concept work operationally and financially? PLUS, in a land where the volume goes to Walmart and the box stores (in large part, due to the expansiveness of our land), will the consumer really pay high prices for ‘convenience’ when ‘one-stop/load-up’ trips are often viewed as MORE convenient (as well as less expensive) than several small trips?

I wish them luck…they’re going to need it big time.

Eliott Olson
Eliott Olson

My take on the matter is that with a temporary closing they can reduce their operating expenses without the hit of a write-off of their store assets and full lease liabilities. This buys existing management more time, but does little to give stockholders a true picture of the financial situation or future potential as they are just delaying costs.

Gustavo Gomez
Gustavo Gomez

Break even by next year? Doubt it. What they are trying to do is find their niche to be profitable. The question is will they find that niche before their patience runs out.

Carlos Arámbula
Carlos Arámbula

Tesco’s Fresh & Easy concept is one that should appeal to the U.S. consumer. However, from my Southern California perspective, I’ve been puzzled by the retailers inability to understand the consumer reflected by odd store locations, an apparent lack of consumer segmentation, product mix, a complete disconnection with the region’s very important and sizable Hispanic consumer group, and marketing communications devoid of any consumer relevance.

Fresh & Easy has behaved as the foreign kid in school who fails to embrace the host culture.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.

I’m disappointed, and have been from the beginning. Pre-opening, I thought they were going to be a super-C-store. The reality was that they were a shrunken supermarket. I thought that Walmart’s response, the Marketside, was a better shrunken supermarket. What I was looking for in both cases was something more like an expanded Sheetz, not a shrunken Safeway.

What happened, at least with Fresh & Easy, is they started aiming for the type of Big Head store (what shoppers mostly want to buy,) maybe an upscale Lidl or Aldi, and immediately began growing a Long Tail (the broader selection that ATTRACTS shoppers — even though they don’t buy it).

This is so characteristic of the merchant warehousemen who populate, especially the upper ranks, of self-service retailing today. Before and right after roll-out you saw lots of management commentary by Tesco on what the Fresh & Easy EXPERIENCE would be for the shopper. (And of course all the social do-gooder stuff, too.) That all disappeared like a fart in the wind, hanging onto forced self-checkout as a vestigial idea. (They do an excellent job of ASSISTING you with your self-checkout — especially since the low traffic usually means there are semi-superfluous staff.) I don’t recall seeing their permanent demo station ever being in action when I visited a store over the years — admittedly at perhaps odd hours).

I don’t know where I would begin with advising/suggesting improvements, apart from maybe a brain transplant. But then, maybe that’s what this little dissertation was. 😉

Anne Bieler
Anne Bieler

Tesco seems to be making the adjustments needed — site selection is critical, understanding your local consumers is essential. Some CA locations were adjacent to low traffic malls; some of the assortment was puzzling, and the higher-end grab and go/ready to cook entrees were not well positioned for the area.

Tesco seems to be learning and experimenting — offering loyalty cards, CA store selling beer and wine, including a “Big Kahuna” range of wines for $1.98, set against the strong position of local Trader Joe’s $2.00 Charles Shaw (Two Buck Chuck). Smaller formats may make more sense for the prepared refrigerated items that are more upscale and similar quick shop products.

It’s a longer road than a turnaround next year, but adapting and moving quickly will be key to a potential longer-term success — a real challenge.

Warren Thayer

Good comments all, but I think Carlos totally nailed it with “Fresh & Easy has behaved as the foreign kid in school who fails to embrace the host culture.” The only added point I would make is that the stores, especially the ones in poor locations, sure could use some better signage so they’re not mistaken for auto parts stores or pharmacies.

Craig Sundstrom
Craig Sundstrom

So how, exactly, is this news? FE continues to have its critics, who fill up the auditorium and its supporters, who partly occupy a table in the cafeteria…and so it will continue until TESCO either (a) euthanizes them (the stores, not the supporters), or (b) they actually become profitable.

Arthur Rosenberg
Arthur Rosenberg

I visited a Fresh & Easy location in Las Vegas shortly after the chain initially opened for business in the US. Immediately I noticed fairly deep track marks on the floor near the entrance. It turned out more were located throughout the store.

Thus my first impression was that this company was trying to make a big splash in America but hadn’t bothered to invest in time or money to give the store a clean, inviting look. This would be bad news for any store offering foods, no matter how old or new.

Rather than a store that bills itself as Fresh & Easy, I would have preferred fresh and clean.

M. Jericho Banks PhD
M. Jericho Banks PhD

Warren, Carlos also nailed it with his comments about locations. The Fresh & Easy one mile from my home behind a Lowe’s is almost complete and has hung out the “Now Hiring” sign. In its front yard, about 150 yards away, is a top-notch, upscale Raley’s supermarket. Can’t say I endorse the F&E location. Is this also true of the F&E stores being closed? My area is yuppified on one side of Highway 65 in Lincoln, CA, and there are no supermarkets there. Directly across on my side of the highway it’s a retirement community. Raley’s and Safeway, about half a mile apart, serve all of us. An independent grocer in downtown Lincoln closed about a year ago and is rumored to become a mini-Walmart, but no action currently. A Trader Joe’s would do well on the yuppie side of the highway if they could get the zoning.

As part of Fleming’s location-scouting team in Philadelphia, I was taught to take these and other considerations into account before recommending a location lease or purchase. Among many others whose opinions I respect, I predicted failure for F&E when it was announced. Initially, it was their business model I questioned. But now it seems that locations might also be an issue.

Jerry Gelsomino
Jerry Gelsomino

Maybe some adjustments were needed as Tesco is still learning about the market. The press should “chill out.”

Kai Clarke
Kai Clarke

Bad business model, bad timing, bad locations. Striving for a breakeven goal is a poor business decision. This sets the wrong example and a poor goal for the entire corporation. Companies are in business to make money, and Tesco needs to focus on this. Successful goals with successful endpoints generate a successful approach!

David Livingston
David Livingston

I was thinking how they promised quality better than Whole Foods and prices cheaper than Walmart. Maybe not in those exact words. But they did not come through. Great comments, i.e. the foreign kid that can’t understand the culture, weird locations, unusual offerings, etc. The kind of store that looks interesting but they were more like a store in Disney World’s Tomorrow Land. I don’t know whether to applaud them for sticking it out or kick them in the rear for continuing to throw cash into this money pit. Remember all the happy press releases about all the wonderful research they did? It was like they started with the conclusions in a finished report and worked backwards.

Mike B
Mike B

I’ve spent substantial time looking at these stores in all of the operating regions and it is just so puzzling to me the locations they selected. Old closed chain grocers, other odd buildings, not at corners, not with good signage or visibility…no common “theme” to the locations. They’re not all in areas with a lot of families, not all in areas with high traffic even.

The stores themselves are cold and underwhelming. Even the recent improvements they have tried to make adding in more products and adding in some fresh bakery areas (about as good as the fresh bakery area in a Maverik c-store…actually I think Maverik may do better with bakery), and the loyalty card, it is becoming more and more obvious they haven’t a clue.

My suggestion to them: focus on densely populated areas with a high proportion of apartment residents. Invest in some LABOR to give customer the prepared foods they WANT. Add in service deli with limited hot food and sandwich options. Add in real bakeries with some service coffee, juice, smoothie, anything. Do SOMETHING to make people want to come in here to grab meals every day.

I’ve been to various of the knockoff concepts to this. Vons “the Market” is far and away better than any F&E I’ve ever been to. Same for the failed AZ Marketsides. Honestly, most convenience stores operated by Kroger are better than these F&E things.

Complete failure; continues to send a mixed marketing message to the customers. With the odd assortment of locations they have selected, I can see why they can’t seem to find a consistent, working marketing message.

Mike B
Mike B

I do have a series of photos of Vons “the Market” location taken last month. It was my first visit to the unit, so I am not sure how much they have tinkered with the format since its initial opening.

23 Comments
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Steve Montgomery
Steve Montgomery

In my experience, temporary closings are usually permanent. Fresh & Easy continues to make adjustments to increase the likelihood of success, such as adding its Clubcard loyalty program, but as many have found, the U.S. retail food market is very well established. I see more a brighter future for its Express format than the current Fresh & Easy offering.

David Livingston
David Livingston

I was in a restaurant awhile back and there was a sign that was always on the wall: “Tomorrow’s Special – T-bone steak dinner – $1.95.” That reminds me of the Fresh & Easy stores. Break even will always be two years away. So in two years, break even will be coming in another two years. Even if some day they do break even, I doubt it will be permanent and they will never erase their accumulated deficit. That has to be approaching a billion dollars by now.

What we do know is that Fresh & Easy came out of the box a big flop. They took B locations and operated some very low volume and low sales per square foot stores. They truly had no clue what they were doing. Sure the stores were cute, they tried some new things, they were trying to be “Green” and politically correct with the food desert crowd.

But success is measured by dollars, not how cute or politically correct the stores are. Their press releases were full of double talk trying to downplay their failures, often saying they were even pleased with their progress. Over time they closed the worst stores and started throwing mud at the wall to see what sticks. Not much has stuck but they have improved. Obviously with their huge financial losses and accumulated deficits, they will probably never get their money back. If and when they do become profitable, competitors like Walmart will come up with a better mousetrap, keeping Fresh & Easy unprofitable.

One thing for sure, expect those press releases full of double talk good news to keep coming.

Ben Ball
Ben Ball

That Tesco/Fresh & Easy is a normal retailer. With an abnormal penchant for doing what is necessary to move the business forward — without paying a lot of attention to what “they” (oops, is that “we”?) say.

Gordon Arnold
Gordon Arnold

Engaging economic depression is a noteworthy effort. In their efforts to work this out, I am sure Tesco has found out just how unreliable current demographic information is. If their executives can learn to get ahead of this problem, their goals will be surpassed. One method I have found to be interesting is looking for tax solvent communities with a below average level of underwater mortgages. This is a safer bet than real estate values and average working household incomes.

Mark Heckman
Mark Heckman

Folks like David Livingston and me (that have site-location analysis experience), know that much of the success or failure of a store has to do with how compatible the format and offerings are within the surrounding trading area and existing competition. Fresh & Easy is no exception. To that point, some Fresh & Easy stores that I have visited were placed in rather questionable locations such as rehab shopping centers in trading areas that did not seem to be ideally suited for this fresh, grab and go format.

I realize these comments are anecdotal and without the benefit of knowing the specifics surrounding each of the stores that are closing, but my point is that closing stores can be more about locational nuance then about the store’s concept and offerings in general.

I would suspect that Tesco will learn from some of these early site-related mistakes and continue to grow this concept in locations that are more compatible with those successful Fresh & Easy stores operating in the U.S.

Richard J. George, Ph.D.

Rule #10 in my strategy book is “Advance and Secure.” Step out but make sure you have a firm place if you need to step back. Also, rule #8 “Concentrate Your Resources” comes into mind. It is not the total resources available, only those at the point of attack that matter. In addition, the military used Retreat as a strategic option. All three of these concepts come to mind when evaluating the latest Tesco decisions.

Tesco appears to be using a strategic retreat from the under-performing stores as the basis for rules #8 and #10. By closing selected stores (Retreat) and concentrating resources (Rule #8) towards new and/or better performing stores, allows Tesco to strategically advance and secure (Rule #10).

The goal here is to out-think versus outspend the competition and to focus on winning the war versus winning individual battles.

John Boccuzzi, Jr.
John Boccuzzi, Jr.

When Tesco announced their move into the US with Fresh & Easy, it made front page headlines. Needless to say, the results have been underwhelming to date. I have toured the chain and the format is beautiful. As stated in the article, the traffic is very light. Why? The store name states what they stand for “Fresh and Easy.” Are US consumers still looking for “Cheap and Big?” I doubt Tesco will give up on the concept any time soon. They just need to figure out the right locations to place these stores and then help educate consumers that the concept is worth shopping.

As people continue to look for healthier solutions Fresh & Easy will find a home in the US market.

Ed Rosenbaum
Ed Rosenbaum

Tesco has their focus set on profitability and/or break even. Only time will tell even though their task is going to be difficult. I do not fault them for closing locations having little hope of meeting their goal.

Kevin Price
Kevin Price

Good for Tesco management to continuously tweak, shutting underperforming stores proactively rather than waiting until widespread, wholesale disaster strikes, forcing closure of ALL stores, as so many retailers have done (Borders, Circuit City and many others immediately come to mind). They’re a breath of fresh air!

That being said, they’re still sticking with a concept that is questionable, at best. In this great, expansive land we live in (relative to Europe), can they really make this concept work operationally and financially? PLUS, in a land where the volume goes to Walmart and the box stores (in large part, due to the expansiveness of our land), will the consumer really pay high prices for ‘convenience’ when ‘one-stop/load-up’ trips are often viewed as MORE convenient (as well as less expensive) than several small trips?

I wish them luck…they’re going to need it big time.

Eliott Olson
Eliott Olson

My take on the matter is that with a temporary closing they can reduce their operating expenses without the hit of a write-off of their store assets and full lease liabilities. This buys existing management more time, but does little to give stockholders a true picture of the financial situation or future potential as they are just delaying costs.

Gustavo Gomez
Gustavo Gomez

Break even by next year? Doubt it. What they are trying to do is find their niche to be profitable. The question is will they find that niche before their patience runs out.

Carlos Arámbula
Carlos Arámbula

Tesco’s Fresh & Easy concept is one that should appeal to the U.S. consumer. However, from my Southern California perspective, I’ve been puzzled by the retailers inability to understand the consumer reflected by odd store locations, an apparent lack of consumer segmentation, product mix, a complete disconnection with the region’s very important and sizable Hispanic consumer group, and marketing communications devoid of any consumer relevance.

Fresh & Easy has behaved as the foreign kid in school who fails to embrace the host culture.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.

I’m disappointed, and have been from the beginning. Pre-opening, I thought they were going to be a super-C-store. The reality was that they were a shrunken supermarket. I thought that Walmart’s response, the Marketside, was a better shrunken supermarket. What I was looking for in both cases was something more like an expanded Sheetz, not a shrunken Safeway.

What happened, at least with Fresh & Easy, is they started aiming for the type of Big Head store (what shoppers mostly want to buy,) maybe an upscale Lidl or Aldi, and immediately began growing a Long Tail (the broader selection that ATTRACTS shoppers — even though they don’t buy it).

This is so characteristic of the merchant warehousemen who populate, especially the upper ranks, of self-service retailing today. Before and right after roll-out you saw lots of management commentary by Tesco on what the Fresh & Easy EXPERIENCE would be for the shopper. (And of course all the social do-gooder stuff, too.) That all disappeared like a fart in the wind, hanging onto forced self-checkout as a vestigial idea. (They do an excellent job of ASSISTING you with your self-checkout — especially since the low traffic usually means there are semi-superfluous staff.) I don’t recall seeing their permanent demo station ever being in action when I visited a store over the years — admittedly at perhaps odd hours).

I don’t know where I would begin with advising/suggesting improvements, apart from maybe a brain transplant. But then, maybe that’s what this little dissertation was. 😉

Anne Bieler
Anne Bieler

Tesco seems to be making the adjustments needed — site selection is critical, understanding your local consumers is essential. Some CA locations were adjacent to low traffic malls; some of the assortment was puzzling, and the higher-end grab and go/ready to cook entrees were not well positioned for the area.

Tesco seems to be learning and experimenting — offering loyalty cards, CA store selling beer and wine, including a “Big Kahuna” range of wines for $1.98, set against the strong position of local Trader Joe’s $2.00 Charles Shaw (Two Buck Chuck). Smaller formats may make more sense for the prepared refrigerated items that are more upscale and similar quick shop products.

It’s a longer road than a turnaround next year, but adapting and moving quickly will be key to a potential longer-term success — a real challenge.

Warren Thayer

Good comments all, but I think Carlos totally nailed it with “Fresh & Easy has behaved as the foreign kid in school who fails to embrace the host culture.” The only added point I would make is that the stores, especially the ones in poor locations, sure could use some better signage so they’re not mistaken for auto parts stores or pharmacies.

Craig Sundstrom
Craig Sundstrom

So how, exactly, is this news? FE continues to have its critics, who fill up the auditorium and its supporters, who partly occupy a table in the cafeteria…and so it will continue until TESCO either (a) euthanizes them (the stores, not the supporters), or (b) they actually become profitable.

Arthur Rosenberg
Arthur Rosenberg

I visited a Fresh & Easy location in Las Vegas shortly after the chain initially opened for business in the US. Immediately I noticed fairly deep track marks on the floor near the entrance. It turned out more were located throughout the store.

Thus my first impression was that this company was trying to make a big splash in America but hadn’t bothered to invest in time or money to give the store a clean, inviting look. This would be bad news for any store offering foods, no matter how old or new.

Rather than a store that bills itself as Fresh & Easy, I would have preferred fresh and clean.

M. Jericho Banks PhD
M. Jericho Banks PhD

Warren, Carlos also nailed it with his comments about locations. The Fresh & Easy one mile from my home behind a Lowe’s is almost complete and has hung out the “Now Hiring” sign. In its front yard, about 150 yards away, is a top-notch, upscale Raley’s supermarket. Can’t say I endorse the F&E location. Is this also true of the F&E stores being closed? My area is yuppified on one side of Highway 65 in Lincoln, CA, and there are no supermarkets there. Directly across on my side of the highway it’s a retirement community. Raley’s and Safeway, about half a mile apart, serve all of us. An independent grocer in downtown Lincoln closed about a year ago and is rumored to become a mini-Walmart, but no action currently. A Trader Joe’s would do well on the yuppie side of the highway if they could get the zoning.

As part of Fleming’s location-scouting team in Philadelphia, I was taught to take these and other considerations into account before recommending a location lease or purchase. Among many others whose opinions I respect, I predicted failure for F&E when it was announced. Initially, it was their business model I questioned. But now it seems that locations might also be an issue.

Jerry Gelsomino
Jerry Gelsomino

Maybe some adjustments were needed as Tesco is still learning about the market. The press should “chill out.”

Kai Clarke
Kai Clarke

Bad business model, bad timing, bad locations. Striving for a breakeven goal is a poor business decision. This sets the wrong example and a poor goal for the entire corporation. Companies are in business to make money, and Tesco needs to focus on this. Successful goals with successful endpoints generate a successful approach!

David Livingston
David Livingston

I was thinking how they promised quality better than Whole Foods and prices cheaper than Walmart. Maybe not in those exact words. But they did not come through. Great comments, i.e. the foreign kid that can’t understand the culture, weird locations, unusual offerings, etc. The kind of store that looks interesting but they were more like a store in Disney World’s Tomorrow Land. I don’t know whether to applaud them for sticking it out or kick them in the rear for continuing to throw cash into this money pit. Remember all the happy press releases about all the wonderful research they did? It was like they started with the conclusions in a finished report and worked backwards.

Mike B
Mike B

I’ve spent substantial time looking at these stores in all of the operating regions and it is just so puzzling to me the locations they selected. Old closed chain grocers, other odd buildings, not at corners, not with good signage or visibility…no common “theme” to the locations. They’re not all in areas with a lot of families, not all in areas with high traffic even.

The stores themselves are cold and underwhelming. Even the recent improvements they have tried to make adding in more products and adding in some fresh bakery areas (about as good as the fresh bakery area in a Maverik c-store…actually I think Maverik may do better with bakery), and the loyalty card, it is becoming more and more obvious they haven’t a clue.

My suggestion to them: focus on densely populated areas with a high proportion of apartment residents. Invest in some LABOR to give customer the prepared foods they WANT. Add in service deli with limited hot food and sandwich options. Add in real bakeries with some service coffee, juice, smoothie, anything. Do SOMETHING to make people want to come in here to grab meals every day.

I’ve been to various of the knockoff concepts to this. Vons “the Market” is far and away better than any F&E I’ve ever been to. Same for the failed AZ Marketsides. Honestly, most convenience stores operated by Kroger are better than these F&E things.

Complete failure; continues to send a mixed marketing message to the customers. With the odd assortment of locations they have selected, I can see why they can’t seem to find a consistent, working marketing message.

Mike B
Mike B

I do have a series of photos of Vons “the Market” location taken last month. It was my first visit to the unit, so I am not sure how much they have tinkered with the format since its initial opening.

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