Fresh & Easy flops, considering closure
December 6, 2012
The owners of Fresh & Easy announced Wednesday that because the stores are failing in the U.S. market they are reviewing options such as selling or closing the chain. [AdAge]
“It is now clear that Fresh & Easy will not deliver acceptable shareholder returns on an appropriate time frame in its current form,” said Tesco CEO Philip Clarke in a statement.
“While Fresh & Easy has many positives, its journey to scale and acceptable returns will take too long relative to other opportunities. I have therefore decided to conduct a strategic review of Fresh & Easy, with all options under consideration.”
Earlier this year, the county’s only Fresh & Easy Neighborhood Market opened on Broad Street in San Luis Obispo amid much fanfare. At the time, Tesco marketed the store as having Trader Joe’s type specialty foods with Walmart prices, a claim deemed inaccurate by many.
The California-based grocery chain opened in 2007. Tesco has invested around $1.5 billion into the U.S. venture, with almost 200 stores employing more than 5,000 people.