Fresh & Easy Markets Take a Break: Expansion in OC Halted

Back in December, I posted about Fresh & Easy Neighborhood Market opening in Orange (Fresh & Easy arrives in Orange — TODAY!). I was pretty excited about it (although I haven’t actually made it out to one yet). I was hoping for one to open closer to my house in Tustin. I hear it’s reminiscent of Trader Joe’s or Henry’s Market with a minimalist attitude. The scuttlebutt has been mostly positive (a few disgruntled folks about the hybrid and family only parking spots and some experiences of not-so-fresh stuff). So, if it’s all good in the hood, why is Fresh & Easy’s parent company British-owned Tesco putting a moratorium on any further expansion? Well, maybe it’s not all good in the hood, after all.

According to the San Gabriel Valley Tribune:

“Fresh & Easy Neighborhood Markets says ‘it’s simply pausing to ‘kick the tires, smooth out any wrinkles, and make some improvements that customers have asked for.’

But some industry analysts say the grocery chain’s decision to not open any more U.S. stores for three months indicates the company – the U.S. division of British food giant Tesco – isn’t meeting sales expectations. . .

‘We’ve opened 31 stores in 66 days so far this year … now we’re pausing for [a] breath,’ Uwins [Fresh & Easy's chief marketing officer] said. ‘We’ve been delighted with the openings. There’s always been a line of customers waiting for each store to open.’

. . . Fresh & Easy spokesman Brendan Wonnacott said the company has since opened its 60th store and plans to have about 200 locations up and running by February 2009.“

The San Diego Union Tribune was a little more harsh in its article calling Fresh & Easy “anything but revolutionary.” The article also claimed, “Analysts and grocery store experts estimate that the British retailer might be missing U.S. sales targets by as much as 70 percent…”

Fresh & Easy’s can be found in SoCal, Las Vegas, and Phoenix. So far, in Orange County, Fresh & Easy has opened stores in Huntington Beach, Lake Forest, Orange, Anaheim, and Buena Park. According to its site, there are (maybe were?) plans to open stores in Fountain Valley, Westminster, Fullerton, and a second store in Orange. Tesco has halted openings through July. Whether these planned OC stores ever open remains to be seen.

So is Fresh & Easy really in trouble? Or, is it just growing pains faced by any company in an expansion phase? Even Starbuck’s has had it’s share of hiccups… just recently with issues of remaining “authentic” (Starbucks Gossip).