British Retailer Tesco Closing Down American Fresh & Easy

After 5 years without profit, Tesco is planning to sell or close Fresh & Easy


Looks like Tesco is quitting the U.S. market after five years; the Wall Street Journal reports that the British retailer is planning to sell or close their 199 Fresh & Easy stores in the United States.

"It's likely, but not certain, that our presence in America will come to an end," a representative said.

The company invested $1.6 billion on the expansion of their grocery stores, which are smaller than a supermarket but bigger than a convenience store. The Fresh & Easy model involved more fresh produce, less packaged goods, and an automated checkout system.

Unfortunately, analysts found that British sensibilities that worked across the pond didn't translate in American markets; the automated system was too impersonal, the products weren't brand-conscious enough to American shoppers, and locations were too close to car-centric markets, where driving to a large grocery store would only take five more minutes. 

A report from Morgan Stanley & Co. found that product ranges were too narrow at Fresh & Easy, and didn't include fresh bakery items. Other downfalls? The stores were too cold, flower departments weren't big enough, marketing focused too much on price, and Tesco belatedly rolled out a loyalty card. Basically, Americans really like brands, flowers, and being thrifty without feeling cheap.


Be a Part of the Conversation

Have something to say?
Add a comment (or see what others think).

Comments 0


Like this story? Get updates by email, facebook and twitter
Get daily food and wine coverage


Latest from The Daily Meal

The Daily Meal Video Network
DIY VS. BUY: Potato Chips

Post a comment

Add a Comment

Upload a picture of yourself no larger than 3MB, please see Terms for details
CAPTCHA
Please answer this Captcha to prove you are human
Image CAPTCHA
Enter the characters shown in the image.
CAPTCHA
Please answer this Captcha to prove you are human