M. Jericho Banks PhD

Tesco to Shutter 12 Fresh & Easy Stores

January 11, 2012

FROM RETAILWIRE:
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. What do you read into the latest store closing and opening announcements from Fresh & Easy?      [more...]

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.