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 Cover Story - January/February 2008  |
An American Dream
With more than 40 locations, 3 states, and 270 sites under development, Tesco’s Fresh & Easy Neighborhood Markets have landed in the U.S. and predicts that in 5 years it will have an impressive 1,000 stores, and in 10 years 2,500. Talk about a grand entrance! The Tesco Empire has entered the U.S. and has no intentions of leaving. In hopes of fulfilling the American Dream–starting small and ending big–England’s mega-retailer Tesco has skipped over the East Coast to set foot in the West and introduce the Fresh & Easy Neighborhood Market. Fresh & Easy is a creation of Tesco PLC. With worldwide headquarters in Cheshunt, UK, Tesco is the UK’s largest retailer and the 3rd largest retailer behind Wal-Mart and Carrefour. Tesco has introduced Fresh & Easy Neighborhood Market, a new retail format that will enable Americans to shop easily for fresh products–as its name Fresh & Easy implies. Southwest Style On December 5th 2007, PL magazine had the opportunity to visit the Fresh & Easy grand openings in the Phoenix, Arizona area. Situated in a small strip mall off a busy intersection, the desert sun shines brightly against the bright green exterior of the Fresh & Easy location at Main St. and Ellsworth, Mesa, AZ. The store stands out amongst the browns and pinks of the mountainous background and beckons to cars and people passing by. A large sign informs people that the Fresh & Easy store is open, and on the day of the grand opening, an employee was positioned at the edge of the road, holding a banner with the same message. The exteriors of all three stores visited are slightly different–two of the facades are green while one was off-white–but all three carry the same large logo on the front of the building and have the same color scheme. Before entering the store, immediately noticeable is the retailer’s attempt to appeal to eco-conscious shoppers by offering reserved parking spots for hybrid cars. Tesco’s sensitivity to shoppers needing extra assistance is apparent; it places wheel-chair accessible spots as well as a few allocated to parents’ w/children close to the entrance. To further demonstrate its commitment to the environment, during the holiday season Fresh & Easy set up a program for customers to recycle holiday cards at each store location. Proceeds from the sale of the recycled cards went to American Forests (http://www.americanforests.org), a non-profit organization that focuses on planting trees in restoration areas throughout the country. In–Store Visit
On opening day, the eagerness and anticipation was obvious as the stores were buzzing, with a mélange of Tesco executives, employees, security personnel, and shoppers wandering around, taking in what the store had to offer. Although Some of the features are new to many American shoppers, benefits such as environmentally friendly products, quick shopping, value, and quality, seem to outweigh any negatives the new features could produce. Upon entering the store, a security officer is positioned at the front, offering shopping carts with a cup holder in Fresh & Easy’s signature green shade. The carts are narrow, enabling shoppers to easily maneuver aisles in crowded situations. Additionally, aisles are comfortably wide and uncluttered, and the shelves and displays are set-up neatly. The innovations continue. The retailer offers recyclable bags in both canvas and plastic, positioned at the beginning of the self-service checkout lanes. The look on some shoppers’ faces was that of excitement and others dismay–self-service checkouts are the only way to pay. The procedure is a potential negative among benefits because despite employees situated at each aisle, the machines tend to be sensitive and the need of assistance initially can be frequent. Consequently, this could make the checkout process longer and more frustrating until shoppers become used to the self-service checkout. Continuing with Fresh & Easy’s simply designed set-up, the products are displayed in shelf-ready packaging, producing uncluttered shelves and easy access to products. By placing signs with clear writing over the shelves, once again the retailer reminds shoppers of the eco-conscious effort they are making as well as confirms the freshness of the products. Signs also inform shoppers that the retailer conserves energy by using LED lighting in its cooler doors, freezers and outdoor signs instead of fluorescent bulbs, which use more energy. A feature worth noting is a small area called ‘The Kitchen Table’ in each store that enables shoppers to sample new products. As an added bonus, the website for Fresh & Easy (freshandeasy.com) provides customers with meal ideas and suggested foods to include in the meal.
A Festival of Food Fresh produce and packaged/prepared foods are the main focus, and the retailer does not skimp on these offerings. A sign above the produce displays states, “We hand-select and carefully package our produce to protect its quality,” and make sure shoppers are aware of this. Walking down the produce aisle, the brightly colored and unblemished fruits and vegetables illustrate the freshness of the products. Beyond the fresh breads and produce, shoppers can’t help stumbling upon the Fresh & Easy PL fresh packaged/prepared foods. One of the main purposes of the Fresh & Easy format is to provide busy customers with prepared meals right at their fingertips, and this goal seems to have been met. Several aisles are allocated to fresh prepared/packaged store brand items. To lure in customers, the displays of fresh prepared items can be found in aisles positioned near the entrance of the store. Products available run the gamut. For sides and appetizers, shoppers can find a wide variety of choices. For example, a package of neatly cut, crisp mixed vegetables ($1.98) and a stir-fry ($3.55 for a 12 oz bag)–portioned, cooked and ready to serve–sat in the cooler beside veggies with dip, fruit salads, and cut fruit in bags. Exotic Entrées Ample space is dedicated to main courses, which are relatively inexpensive. Customers can choose from options such as beef lasagna, chicken and pasta Alfredo ($1.48), veggie samosas, onion bhajis ($2.99), and a whole roasted barbecued chicken ($6.99 for 35 oz), to name just a few. Fresh pizzas are available with options such as 5 cheese, supreme and Jamaican-style jerk pizzas ($5.99 for a 12” and $3.89 for 8”). While the emphasis is placed on the fresh prepared foods, the frozen prepared food offerings are plentiful. A British influence can be detected in some of the fresh prepared foods as well as the frozen selections, which include a number of Indian cuisine and dishes that are popular among the British, like beef Shepard’s pie. The freezer cases hold an assortment of non-traditional items ranging from a teriyaki chicken bowl ($1.99), to a tamale bake ($4.90), to jalapeño chicken, to shahi paneer. The Fresh & Easy private label also features a variety of frozen seafood including bay scallops, mahi mahi (2 filets for $5.69) and Alaskan sock-eye salmon. Shoppers with a sweet tooth can find fresh, individually packed items such as tiramisu ($9.79 for 17.6 oz), flan, rice pudding, and dark chocolate molten, as well as frozen desserts such as tres leches ($3.99), pomegranate and blueberry sorbet ($1.98 11 oz) and toasted banana gelato. Fast Food Shoppers can run in and grab a quick lunch as well. Situated close to the checkouts are open refrigerator cases offering a good number of options such as sandwiches, potato salad, and meal-sized salads. The sandwich selection includes an assortment of interesting rather than standard sandwiches such as a 10 oz steak and blue cheese ($3.99 for 10 oz), smoked salmon and herb cream cheese, a 10 oz combo meat torta ($3.99 for 10 oz), and tomato, basil and mozzarella ($2.99). In addition, an innovative store-brand available is geared towards children–a snack box called Smart Box ($2.99), meant to compete with Lunchables. The boxes contain juice, carrots, crackers and string cheese, raisins and a juice. On the outside of the box is a game, different for each box including a word finder and connect-the-dots. For those who want a salad option, there are large salads such as a hearty beef salad ($4.77), and a cranberry and blue cheese salad ($3.99). Also available is a variety of ‘greenless’ salads such as egg salad and mango curry chicken salad ($2.99). The salads come in small containers containing a fork so shoppers can eat and go without worrying about where to find utensils. Additionally, shoppers can find sushi boxes containing 8 pieces of fresh sushi ($4.99 for a California and Nigiri mixed combo). Along with the fresh prepared/packaged food, Fresh & Easy stocks its shelves with dry grocery, canned and bottled items; for example, whipped honey, pasta sauces, boxed rice, pasta, and juices and teas. Satisfaction Customers at the opening of the four Arizona locations seemed pleased with their shopping experience. One customer stated that the clearly marked signs were helpful, and she liked the fact that she could make a quick stop for a sandwich at lunch. She also commented that the prices were comparable to her usual grocery store, Fry’s. Although most reactions were positive, one shopper approached wasn’t too impressed with the Fresh & Easy format. She remarked that she preferred the selection at Trader Joe’s because there was nothing special about Fresh & Easy; many of the products were similar to Fry’s and Safeway. Competing retailers visiting the stores did not seem concerned with losing business. For example, a Safeway representative told PL that he wasn’tworried that Fresh & Easy would compromise Safeway’s sales. The store, he said, did not offer shoppers a complete shopping experience, but rather was a place for a small family or single person looking to quickly pick up a prepared meal, while Safeway provides shoppers with a wider range of products. The opening day atmosphere of the store was enthusiastic and lively. Quite a few shoppers were there due to curiosity, and others to purchase groceries. Many shoppers exited the store into the sparkling sunlight with smiles on their faces and shopping carts full of groceries–probably including a large number of Fresh & Easy’s private label. If satisfied customers are an indication of success…then in the USA, Fresh & Easy has a bright future ahead of it. |
