FoodNuts!

Entering one of the most competitive grocery markets in the world, Tesco’s Fresh & Easy is not having an easy time of it here in Southern California. Although they have yet to open a store in Santa Clarita, apparently they have rather misjudged the buying habits of a large swath of the Southland.

There are 70 stores now open in Southern California, which has been hurt more than other regions by the recession. Fresh & Easy also opened stores in other areas with poor economies, including Phoenix and Las Vegas.

Apparently, they have decided to finally make some concessions to the actual customers, who are not used to just purchasing what they need for the day. Typically, SoCal families like to purchase food for the week — and small package sizes don’t really fit into that style.

The company is adapting “to customer feedback” by adding cereal and pet food choices and offering larger package sizes for families, he (Tesco CEO Terry Leahy) said.

…

“Everything has gone awry, from store operations to pricing to variety and selection to their locations. You could not do much worse unless you did it on purpose,” said David J. Livingston, a Waukesha, Wis., grocery industry consultant. “They were arrogant and totally misjudged the American consumer.”

Hopefully they will continue to pump cash into the operation, and change things up to be competitive. It would be a shame to lose another choice, since consumers usually love having alternatives (and the standard chains need sharper competition).

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