Fresh isn't turning out to be all that easy.
With much fanfare, British retailer Tesco this fall billed its Fresh & Easy Neighborhood Market chain of small grocery stores as a fresher, more convenient alternative to large supermarkets when it opened its first stores in Southern California.
Nearly six months later, it looks as though many shoppers aren't buying it. The chain remains optimistic but says it is suspending the opening of U.S. stores for three months.
At the same time, financial analysts believe the Brits may be missing their sales targets by as much as 70%, but the company maintains a stiff upper lip.
"We are encouraged. Every week we see more customers and higher sales," said Simon Uwins, Fresh & Easy's marketing chief. He declined to discuss specific sales figures.
But many customers, competitors, grocery experts and financial analysts say they are not convinced that the much-ballyhooed British invasion of Southern California has been a success -- at least so far.
Fresh & Easy plans to open two stores in the coming weeks, bringing its total to 61 in the Southwest, with 31 in Southern California. But then the chain plans to put a halt on store openings until July.
"We need a time to settle the business and kick the tires," Uwins said.
Shoppers vary widely in their impressions. Some customers like the selection, the prices and the convenient locations. Others say they can't find the products and brands they want and they see no reason to change their shopping habits.
At the store in east Long Beach recently, there were almost as many Fresh & Easy employees as there were shoppers. Meanwhile, at two other nearby supermarkets, customers waited at check stands two to three deep with stuffed shopping carts. The Fresh & Easy competes head-on with Stater Bros. and Albertsons, all located at the intersection of Palo Verde Avenue and Spring Street.
"I know there is a Fresh & Easy across the street, but I like the prices at Stater Bros. and the selection works for our family," said Bill Mattingly of Long Beach as he finished shopping at the Stater Bros.
Ernie Herrera, a Stater Bros. customer from Norwalk, said he wanted to check out a Fresh & Easy, "but I haven't been able to find one." He was unaware that there was a store in plain view from the back of his truck where he was loading groceries.
Despite the sparse store traffic, Fresh & Easy has gained a loyal, if small, following.
