| Type | Subsidiary |
|---|---|
| Industry | Retailing |
| Founded | 2007 |
| Headquarters | El Segundo, California |
| Number of locations | 182 stores |
| Area served | Western United States |
| Key people | Tim J.R. Mason (President/CEO) |
| Products | Groceries |
| Parent | Tesco |
| Website | www.freshandeasy.com |
Fresh & Easy Neighborhood Market is a chain of grocery stores in the western United States, headquartered in El Segundo, California.[1] It is a subsidiary of Tesco, the world's third largest retailer.[2] It has plans for rapid growth - the first stores opened in November 2007 and, after a pause in the second quarter of 2008, the opening program recommenced; there are now 182 stores in Arizona, California, and Nevada as of October 5, 2011.
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On February 9, 2006, Tesco announced that it planned to move into the United States by opening a chain of small format grocery stores on the West Coast (Arizona, California and Nevada) in 2007 named Fresh & Easy.[3] The initial planned capital expenditure is up to £250m ($436m USD) per year. After Tesco CEO Terry Leahy announced serious resources had been committed to developing a format that would be popular with American consumers, investors responded with some skepticism with a small drop in the company's share price.[4]
There is a distribution centre in Riverside, California and the company initially expanded into California, Phoenix, Arizona, and Las Vegas, Nevada.[5] The 500 planned San Francisco Bay Area stores will be served by a new distribution centre in Stockton.[5]
Tesco purchased a 130,000 square metres (1,400,000 sq ft) distribution centre in Riverside County, and planned to acquire another in Phoenix. The markets were expected to be around 1,400 square metres (15,000 sq ft)--good sized supermarkets in many countries, but about one-third the size of an average supermarket within the US.[6]
By January 2007, Tesco opened its U.S. headquarters in El Segundo, California.[7] Tesco also began construction on the Riverside County distribution centre in Moreno Valley near the former March Air Reserve Base.[8] This distribution centre has California's largest solar panel roofing system.[9]
The company was looking for another distribution centre location in Stockton, strategic for entering the Northern California region.[10]
On 21 April 2009 Tesco reported a trading loss of £142m from Fresh & Easy.[11]
On 4 October 2010 Fresh & Easy announced that it was temporarily closing 13 stores because of shrinking populations, high percentage of housing foreclosures and high unemployment rates. The stores were being mothballed, with hope of reopening them when the economy improves. Six of the stores were in the Las Vegas area, six in the Phoenix area and one in Moreno Valley. Most of the closures were "C-level stores," or those doing less than $50,000 USD in weekly sales.[12][13]
The business is not expected to break even until 2012-13.[14]
Fresh & Easy had announced in October 2007 that the first California and Arizona stores would open November 8.[15] However on November 1, 2007, Fresh & Easy opened its first store, in Hemet, California, as a "soft opening". (Soft openings are traditionally done in the retail business to test systems and store staff, and prepare for a larger "grand opening.") The Hemet store, near the company's distribution center, along with five others in Los Angeles and Orange Counties, then had their "grand opening" on November 8, 2007.
Fresh & Easy Neighborhood Market currently employs 20 to 30 associates per store. In California, part-time employees are paid a starting hourly wage of $10 USD per hour. The starting hourly wage is $10 an hour in Nevada and Arizona. Those store employees who work at least 20 hours per week get a health insurance plan, which they also contribute to. Assistant managers, called Team Leaders, currently are paid $13 hour (California). In Arizona, each of these positions pay US$1 per hour less.
From April until the end of June, 2008, Fresh & Easy took a pause from opening any new stores. That hiatus was lifted with the July 2, 2008 opening of a store in Manhattan Beach, California. As of October 5, 2011, there are 182 stores in Arizona, California, and Nevada.
On September 8, 2010 Fresh & Easy opened 4 new stores in California, marking the 100th store for the state.[16] By August 2011, with the first Northern California stores open, there were 128 stores operating in California.
July 2007, Tesco announced plan for several Arizona[17] stores. The first Mesa, Arizona, store opened December 5, 2007.[18] There are currently (as of August 2011) 28 locations in operation in the greater Phoenix area.
The first five Nevada stores opened in the Las Vegas area November 11, 2007.[19] There are now (August 2011) 21 stores in operation in and around Las Vegas.[20] Many stores were opened in the locations of former Rite-Aid Pharmacies.
Tim J.R. Mason is the President and Chief Executive Officer of Fresh & Easy.[21] He joined Tesco in 1982 and became a member of the Board in 1995.[22] Mason relocated to the U.S. with his family as part of the assignment of building the U.S. presence. He led the team researching the U.S. market prior to the company opening its first American store.
In March, 2011, Mason took on new roles as deputy chief executive and chief marketing officer within Tesco, and now spends about a third of his time outside of the US.[23]
Fresh & Easy's headquarters is in El Segundo,[7] near Los Angeles International Airport.
Fresh & Easy states it has made a commitment to building Leadership in Energy and Environmental Design certified buildings. It will recycle or reuse shipping and display products. Its food transportation trailers are hybrid electric-diesel.[24] The Riverside distribution center hosts California's largest solar roof installation.[25] Stores are equipped with LED lights in freezers, coolers and for outdoor signage.[26] Some stores have reserved parking for hybrid cars.
On September 8, 2010, Fresh & Easy opened its first store to be GreenChill certified (Rosemead store). Fewer than 40 of all grocery stores in the USA are GreenChill certified.[16]
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