Some are calling it one of the largest failures in modern supermarket retailing, if not the largest ever. Tesco came to the U.S. armed with research that supposedly was going to tell consumers how they ‘really’ wanted to buy groceries. Instead, the end product fluttered into a confused supermarket concept that never truly appealed to shoppers in the western U.S – the concept’s birthplace.
In the UK, the Telegraph reports that Tesco CEO Philip Clarke is headed to the U.S. for what are believed to be negotiations that could result in the company finally being able to end its disastrous Fresh & Easy Neighborhood Market venture. Among the companies said to be interested in all or part of Fresh & Easy are Aldi, Trader Joe’s and possibly even Walmart.
Tesco invested a reported $1.5 billion into Fresh & Easy. The division has yet to become profitable. Earlier this year, it announced a review of the business with an end result of selling all or some of the company, adding a partner, or closing down all together.
Despite poor profitability, Fresh & Easy’s real estate appears to be in prime locations. With nearly 200 stores, the sites are situated in metropolitan areas that were originally built for convenient access. Data shows that most locations actually slightly increased market share in fiscal 2012.
Fresh & Easy CBSA Markets*
| CBSA |
Current Area Stores |
Current Market Share |
Previous Area Stores |
Previous Market Share |
| LOS ANGELES-LONG BEACH-SANTA ANA, CA |
60 |
1.30% |
58 |
1.20% |
| RIVERSIDE-SAN BERNARDINO-ONTARIO, CA |
24 |
1.40% |
25 |
1.30% |
| PHOENIX-MESA-GLENDALE, AZ |
24 |
1.10% |
24 |
1.00% |
| LAS VEGAS-PARADISE, NV |
21 |
2.70% |
21 |
2.30% |
| SAN DIEGO-CARLSBAD-SAN MARCOS, CA |
17 |
1.50% |
17 |
1.40% |
| SAN FRANCISCO-OAKLAND-FREMONT, CA |
12 |
0.70% |
12 |
0.70% |
| OXNARD-THOUSAND OAKS-VENTURA, CA |
9 |
2.50% |
9 |
2.30% |
| BAKERSFIELD-DELANO, CA |
6 |
2.30% |
6 |
2.20% |
| FRESNO, CA |
6 |
1.80% |
6 |
1.60% |
| SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA |
5 |
0.50% |
6 |
0.60% |
| SAN JOSE-SUNNYVALE-SANTA CLARA, CA |
5 |
0.70% |
5 |
0.70% |
| SANTA BARBARA-SANTA MARIA-GOLETA, CA |
3 |
1.70% |
2 |
1.00% |
| HANFORD-CORCORAN, CA |
1 |
3.80% |
1 |
3.40% |
| MODESTO, CA |
1 |
0.50% |
1 |
0.40% |
| NAPA, CA |
1 |
1.30% |
1 |
1.30% |
| VALLEJO-FAIRFIELD, CA |
1 |
0.50% |
1 |
0.50% |
| SAN LUIS OBISPO-PASO ROBLES, CA |
1 |
1.00% |
N/A |
N/A |
*Source: Chain Store Guide’s 2013 Grocery Industry Market Share Report
