The company's Fresh & Easy stores are about the size of a typical Trader Joe's grocery. Each store carries about 3,500 products, with about half sold under the Fresh & Easy house label.
The concept aims to edit down the selection for shoppers, providing one or two product choices in each category to make it easier for people to do their shopping and get out. The stores also have a large selection of prepared foods and meals that can be quickly assembled by time-pressed households.
Fresh & Easy won't accept coupons. It doesn't have a loyalty or club card program. Customers must use self-service checkout stands. The company has deflected efforts by labor unions to organize its workforce. And it's done little advertising, relying mostly on a direct-mail flier sent every two weeks to homes near its stores.
That's been enough to attract some customers but not necessarily keep them. On a recent visit, Kerry Johnson, another Long Beach shopper, thought the prices were good but was disappointed with the limited selection. He left the store without buying anything after he was unable to find a liquid antibacterial hand soap.
Other shoppers have been frustrated with gaps in what the chain does carry. Retail strategist Bishop said as much as 10% of the shelves were unstocked, a higher percentage than both customers and the industry had expected.
Analysts also report that the chain has developed fractious relationships with some suppliers. Representatives of wine and produce companies have said that the chain is difficult to work with. The individuals asked not to be named because they were fearful how it would affect future business.
"Many of the suppliers are becoming disenchanted and some are walking away from the business," said Jim Prevor, editor in chief of PerishablePundit.com, a website for the fresh food industry.
"They are doing this quietly; nobody wants to make an enemy" of Fresh & Easy owner Tesco, Prevor said. Many of the companies still want to sell food and wine to Tesco's much larger operations in England and other countries.
Soon, Fresh & Easy will probably face challenges from competitors such as Wal-Mart Stores Inc. and Vons owner Safeway Inc., which are considering versions of stores "that will also be smaller and convenient, but have the selections that American shoppers expect," Prevor said.
"The situation isn't going to get easier."
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jerry.hirsch@latimes.com
