Thursday, August 19, 2010
A British grocery chain that broke into Southern California four years ago will move into the Bay Area early next year by opening seven stores, including one in San Francisco's Bayview neighborhood, that will feature automated checkout lines and fresh-made meals in addition to the standard fare.
Behind the expansion of the Fresh & Easy Neighborhood Market chain is a story of changing consumer habits and a global competitor with nearly 5,000 stores around the world.
Mark Hamstra, retail editor for Supermarket News, said the British firm had mounted an unprecedented $2 billion plan to penetrate the U.S. market by building a chain from the ground up, rather than by acquisition.
"They think they have a better model for the way consumers will shop for food in the future," he said. "They want to compete with the likes of a Safeway, but do it like a Trader Joe's, with special items that consumers can't find elsewhere."
Rather than loading up the shopping cart once a week, Mason said the company is betting that consumers will make more frequent trips to the market, often looking for prepared meals and fresh foods in addition to the staples, pet supplies and beauty aids that fill pantries and cabinets.
To get customers in and out quickly, Mason said every line in the store will have an automated checkout option for those who know how to use the scanners while those who don't can get an attendant to process their purchases.
Many prepared foods
Fresh & Easy stores will feature prominent delis, called Kitchen Tables, stocked with soups, guacamoles and other prepared foods, made without preservatives in the company's industrial kitchen. The stores will be green, literally and figuratively, from the color scheme of the walls and the staff's T-shirts to the recycling operation and various energy-saving practices.Driving the invasion is Fresh & Easy's British parent firm, Tesco, a household name in that country with 2,500 stores. Mason said Tesco began a global expansion in the late 1990s, when it opted against trying to crack the Western European or U.S. markets.
Instead it entered Eastern Europe, where it now has 1,000 stores, and Asia, where it has 1,300 spots in Thailand, South Korea, China, Malaysia Japan and India.
The global giant has made some missteps in its new U.S. venture, such as starting in the teeth of a recession.
Fresh & Easy was also dinged by food activists for not opening enough stores in poor neighborhoods. The non-unionized chain has drawn the ire of organized labor. Mason said to unionize or not is up to employees and that he is proud of the firm's $10 per hour entry wage, 75 percent paid health benefits, quarterly bonuses and 401(k) match.
Tough competition
The grocery industry is incredibly competitive. Berkeley's Grocery Outlet has been opening more discount stores. Mi Puebla Food Center, a regional chain, recently added its 17th store in Newark.Meg Major, editor of Progressive Grocer, said she likes the Fresh & Easy format and admires the British firm's audacity, but said the newcomer is in for a fight.
"It's not as if Safeway is crouching in fear," she said.
New stores
These Fresh & Easy stores are scheduled to open in 2011:San Francisco: Third Street and Carroll Avenue
San Jose: Bird and Minnesota avenues
Danville: Diablo Boulevard at Interstate 680
Pacifica: Cabrillo Highway and Linda Mar Boulevard
Vacaville: Elmira and Nut Tree roads
Walnut Creek: Ygnacio Valley Road and San Carlos Drive
Concord: Clayton and Ygnacio Valley roads
Source: Fresh & Easy Neighborhood Market
E-mail Tom Abate at tabate@sfchronicle.com.
This article appeared on page D - 1 of the
San Francisco Chronicle
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/08/19/BU851EVR2J.DTL#ixzz0x42SkXmv
Submitted by Jim Alex
13 comments:
That's cool and that's progress!
Unfortunately their prices are high. Do we have extra money ? No. Everyone is being careful .
To be honest with you COSTCO will be ideal .We could attract Half Moon, El Granada, Moss Beach, Montara, Princeton etc customer to come an expend $$$ here.
I'll believe it when I see it.
That space isn't big enough for a Costco.
Trader Joe's would have been perfect but they didn't like the locations Pacifica had.
Are you kidding? Pacifica open space.....plenty for a Costco, Wallmart, Target, Kmart etc.
Where?
Finally a new large chain-style business is slated to come to town and all you people can do is find something to complain about.
If the prices are too high -- don't shop there. Someone will and it will bring some revenue to the city.
Sheesh!
Anon @ 11:12am, look at the comment posts to the above article. The conversation is more about very competitive large tax revenue producing retail/wholesale/cut-rate businesses, for which Pacifica seems to have no large land space which is not taken by "unproductive open space".
There is no real conversation about "Fresh and Easy" here, other than "cool" and "their prices are too high", so that one would be 1 compliment and 1 complaint.
Since you seem to be exorcised about Fresh and Easy "complaints" you might try Riptide, they actually made a conversation about this. But, if you choose to rag at them, you will not be able to hide behind your Anonymous name. You think a small grocery store will bring a lot of tax revenue to this city?
Some good stuff on Fresh & Easy in Pacifica and Northern California and in general at www.freshneasybuzz.blogspot.com.
Have been in Fresh & Easy's in Southern Calif and Vegas. They are OK but nothing great. Will help keep prices at Safeway and others down in town though.
Human Rights Watch just named Fresh & Easy as one of the worse European companies violating labor rights in the U.S. Not happy news about our new grocery store. Check it out http://freshneasybuzz.blogspot.com/2010/09/human-rights-watch-charges-tesco-and.html
I look forward to competition for Safeway. There are currently five grocery stores to chose from between Half Moon Bay and Pacifica and three of them are Safeway. The selection & service at all three Safeway stinks, the isles are way too narrow and they never have enough inventory. Food Town is too out of the way for me and Green Leaf wanted $8 for a piece of prepared chicken.
Bring on the competition!
The new Fresh& Easy store will open in Pacifica on 9th MARCH 2011 More competition offering good quality food at competitive prices which will happen with the arrival of F&E can only be good news for the city.
Been in the stores down in SoCal. Not really impressed.
Costco? Take a look at the size of the space you need. Jesus.
If you like Safeway got to Safeway, Costco, Lucky, New Leaf!
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