Tim Ashdown Named CEO at Tesco's Fresh & Easy

Breaking News ... Plus Analysis

Tim Ashdown, the former CEO of United Kingdom-based Tesco's Asia operations, who's essentially been running Fresh & Easy Neighborhood Market as its chief operating officer since arriving in May of this year, has been named CEO of the El Segundo, California-headquartered chain, replacing Tim Mason who departed Fresh & Easy and Tesco, where he was deputy CEO and chief marketing officer in addition to being CEO at Fresh & Easy, this week as part of Tesco CEO Philip Clarke's decision to exit the U.S. by either selling the 200-store grocery chain as a whole or in pieces, or if that fails, closing its doors.

Ashdown, who is responsible for the various changes (like testing full-service checkout in two stores) and workforce reduction measures at Fresh & Easy over the last eight months, was named CEO yesterday. The announcement was made to employees at Fresh & Easy's corporate office in El Segundo. Tesco's CEO, Philip Clarke, has been in Southern California this week.

Ashdown's key task as CEO, in our analysis, is to keep Fresh & Easy on life support until Clarke and Tesco's board can, the hope, find a buyer for the chain, which opened the doors of its first store in November 2007. That first store, in Hemet, California, has since been closed, along with 23 other Fresh & Easy units , because it failed to come even close to meeting the weekly sales numbers needed to continue in operation.

Tesco, which truth be known has no idea what to do with Fresh & Easy - and hasn't for a number of years -  has hired the Greenhill investment firm to find a buyer for the chain. Failing to do that, Greenhill, which is also the firm trying to find a buyer for Supervalu, Inc., has been charged by Tesco to come up with other alternatives, which include selling the stores and the massive Riverside, California distribution center (and related campus properties) piecemeal.

Greenhill, which actually has been working on the project for some time, is going to have a difficult time of it. For example, only about 20% (30-40 units) of Fresh & Easy's 200-store base are in the black - and not by much. Additionally, many of those money-losing remaining 150-plus stores are bleeding tons of red ink, so much so that Tesco reduced the operating hours of 30-plus stores earlier this year, as we reported exclusively in Fresh & Easy Buzz.

Ask yourself this: Would you buy a grocery chain with only 30-40 of its 200 stores in the black?

Selling the stores piecemeal will be no easy task either. Only a few of the 200 units have sales of $150,000 or more per-week, for example. A few more are doing around $100,000 in average weekly sales. Still others, the bottom tier, aren't even close to approaching weekly sales of $100,000.

The 850,000 square-foot distribution center in Riverside is also a white elephant, which continues to bleed red ink for Tesco. The campus was built for a chain of 1,000 stores doing at least $3 billion a year in annual sales - and with a profit. There are 200 Fresh & Easy stores. Annual sales is a bit over $1 billion.

The facility is also custom-built for the "Fresh & Easy" way of doing business, logistics and distribution. It should eventually sell, but at a very low price, in our analysis.

Tesco of course wants to sell Fresh & Easy as a whole. Good luck.

As we've reported exclusively, discount grocer Aldi (we're still looking for another publication to do some reporting on what is a major development) plans to enter California in 2013. Aldi has an interest in some Fresh & Easy stores and the distribution center, according to our multiple sources. However we would be stunned were they to buy the entire Fresh & Easy operation, unless they get it at a fire sale price, which is possible.

Discounter Dollar General, which is opening numerous dollar stores and Dollar General Market grocery stores throughout California, Nevada and Arizona - the three states where Fresh & Easy does business - also has an interest in the chain. Again we would be stunned if Dollar General were to acquire Fresh & Easy as a whole. Dollar General has been acquiring vacant buildings for its stores in the three states on the cheap. The discounter also has a distribution center in Bakersfield, so doesn't need the Riverside facility.

Bottom line: We predict Tesco will have no choice but to sell Fresh & Easy off piecemeal; groups of stores and single stores, along with marketing the distribution center individually, or perhaps as a package along with a group of stores.

Tesco also has more than a score of Fresh & Easy locations sitting fallow; some with completed but empty stores, others undeveloped locations. It's nightmare; so many leases for so many fallow properties are out there we suspect many landlords are not getting all that much sleep this week.

There is interest out there for some of the Fresh & Easy stores. For example, more than one commercial real estate agent specializing in retail properties has contacted Fresh & Easy Buzz, seeking information about the chain and its stores. Our take from these interactions is that many retailers out there think they can get some stores for a huge bargain.

We've also been asked questions - looking for an informed and objective third party we take it - from representatives a couple retail chains, who are gleaning information about individual Fresh & Easy stores.

We also know of one party that has proposed a joint-venture of sorts with Tesco. In our analysis, it wouldn't fly.

But back at the ranch in El Segundo, Fresh & Easy's new CEO, Tim Ashdown, who's had a trial by fire since arriving in sunny and recently rain-soaked California in May - we reported his being moved from Asia to California exclusively here [ May 2, 2012: Reshuffling at the Top at Tesco: Retail Chief Adams Leaving Fresh & Easy For Turkey; China CEO Ashdown to Replace Him; Richie to Head China Operations] - has plenty more fire to wade through. We suggest a truckload of own brand, perhaps "Tesco's Finest," fire extinguishers might be a good idea.

Ashdown's biggest task, as we've said, is going to be keeping Fresh & Easy on life support between now and about March-April 2013, which is the time CEO Clark and the Tesco board hope to be able to dispose of Fresh & Easy - one way or the other.

Related Stories

December 4, 2012: The End is Here For Fresh & Easy: Mason Out as CEO; Tesco To Figure Out How to Exit U.S.

December 4, 2012: The End For Tesco's Fresh & Easy is Here

August 8, 2012: Fear & Loathing in the Aisles: Reduction in Hours and Selected Firings Begin Today at 33 Fresh & Easy Stores

July 28, 2012: Fresh & Easy Neighborhood Market Planning Major Renovations at Two California Stores

July 28, 2012: Fresh & Easy Neighborhood Market to Test Full-Service Checkout at Two California Stores

July 26, 2012: Fear and Loathing in El Segundo: Mass Firings, Reduction in Store Hours at 33 Fresh & Easy Stores ... and More

June 4, 2012: West Coast Bound - Aldi USA Headed to Southern California; First Stores to Open in 2013

April 10, 2012: Dollar General's California Dream Becoming Reality

Fear & Loathing in the Aisles: Reduction in Hours and Selected Firings Begin Today at 33 Fresh & Easy Stores

The Insider - Heard on the Street

Tesco's Fresh & Easy Neighborhood Market began terminating selected store-level employees, mostly but not exclusively regular grocery clerks called Customer Assistants, today at 33 of its 199 grocery markets in California, Nevada and Arizona.

I learned this while visiting a number of Fresh & Easy stores in two states yesterday and today.

I also verified it with a number of store-level Fresh & Easy Neighborhood Market employees, including two who were fired today.

In this July 26, 2012 piece, Fear and Loathing in El Segundo: Mass Firings, Reduction in Store Hours at 33 Fresh & Easy Stores ... and More, I reported exclusively that Fresh & Easy Neighborhood Market planned to reduce the operating hours at 33 of its stores from the retailer's normal 8 a.m.-10 p.m. hours to 9 a.m-8 pm, beginning soon.

That day is here: I also learned during my store visits yesterday and today that the reduced hours at the 33 stores are effective today. Instead of the previous 8 a.m.-10 p.m. operating hours, the doors to these 33 Fresh & Easy markets now officially open at 9 a.m, and close at 8 a.m.

I'm not aware of one grocery chain (read competitor to Tesco's Fresh & Easy) in California, Nevada and Arizona. In fact, many stores operated by the leading chains in the three states, such as Safeway, Kroger Co., Supervalu, Save Mart, Albertson's LLC, Stater Bros. and others, keep many of their respective stores open 24-hours. The stores not open 24-hours close generally at 11 p.m or midnight and open at 7 a.m.

Grocery stores that are doing well don't close at 8 p.m., unless they're doing so well that opening them any later would prove to be an embarrassment of riches to a modest grocery retailer. And grocers who want their stores to do well don't close them at 8 p.m.

Additionally, for those not experienced in the food and grocery retailing business, if a grocer decides to close a bunch of stores, like 33 of its 199 units, at 8 p.m. rather than the previous 10 p.m., you can take it to the bank the company CEO has very little if any faith in the future potential of those stores. If that's not the case, then he just doesn't understand the grocery business.

The selected store-level layoffs are a part of the reduction in hours program at the 33 Fresh & Easy stores.

Since the stores are opening one hour later and closing two hours earlier, less employees are needed.

Some of the workers at the affected stores are getting transfers to other Fresh & Easy markets.

Other employees at the 33 stores are getting their hours cut, in many cases down to 20 hours a week, which is the minimum they are required to work in order for the grocery chain to pay the 70-75% employer contribution for the workers health insurance policies.

Over the last five years of its operation (the first stores opened in November 2007) most Fresh & Easy Customer Assistants, who are hired part time and guaranteed 20 hours a week at the time of hire, have worked more than the minimum guaranteed hours at the request of either store management or themselves. Few employees have worked just 20 hours a week over the last five years Fresh &Easy has been in operation.

Cost-cutting strategy

The reduction in store operating hours and related reduction in store employee hours, along with the layoffs of the Customer Assistants and others I'm telling readers about today, is all about reducing labor and related costs for Tesco's Fresh & Easy.

The store-level cuts go hand-in-hand with the termination of about 50 employees in one day at Fresh & Easy Neighborhood Market's corporate headquarters in El Segundo, California, which I wrote about here on July 26.

Battles and wars

The cost-cutting comes now, in my analysis and opinion, because Tesco's fiscal half-year ends in about a month. Tesco must show its making at least a minimum reduction in its losses, $245 million for the most-recently-ended fiscal year (ended February 2012), when it reports its fiscal half-year results this fall.

Prior to making the cuts at its corporate headquarters in late July and the store-reductions I'm describing in this piece, Fresh & Easy Neighborhood Market was not on track to show any significant improvement in its half-year performance over the previous half-year, based on my reporting and analysis.

Since the cuts come so near the end of the half-year, I don't expect Tesco to report a major reduction in losses for the half-year in relation to the $245 million it lost in its most-recently ended fiscal year. It will be interesting to see - and more cuts are coming - what Tesco does report as a loss for Fresh & Easy for the half-year.

Breaking even with Fresh & Easy, which Tesco says it will do so by the end of its 2014 fiscal year, which is less than two years away, is only part of the story for Tesco - it's the battle but not the war. And it's the war that truly matters. Despite winning many battles a war can still be lost.

For Tesco, continuing my battle vs. war analogy, the war boils down to this question: Does Fresh & Easy have a future as a viable and profitable grocery chain?

That's a question I will be addressing in one of my next columns.

-The Insider

[Editor's Note: 'The Insider' isn't a literal or descriptiive title for our columnist. Fresh & Easy Buzz is an independent Blog, and is not affiliated with Tesco, Tesco's Fresh & Easy Neighborhood Market, or any of its competitors. No member of the Fresh & Easy Buzz editorial team has ever or currently works for Tesco or its Fresh & Easy Neighborhood Market chain.]

Fear and Loathing in El Segundo: Mass Firings, Reduction in Store Hours at 33 Fresh & Easy Stores ... and More

The Insider - Heard On the Street

Regular followers (and if you aren't one, you should be) of our Fresh & Easy Buzz Twitter Feed are aware that for the last couple months we've been reporting there in real time on numerous interesting developments at Fresh & Easy Neighborhood Market's corporate headquarters in El Segundo, California - near-daily closed-door meetings in the offices of the CEO and retail operations chief, and the increasing use of interns to staff various positions, for example.

These developments, and two big ones announced to employees at yesterday's weekly staff meeting, are all about Tesco's struggle to stop the financial bleeding at now five-year-old Fresh & Easy, and its attempt to make good on the promise made by CEO Philip Clarke that the United Kingdom-based retailer will break even with Fresh & Easy Neighborhood Market by February 2014.

Clarke, a Tesco lifer (he started as a teenager stocking shelves) who became CEO of the global retailer in March 2011, said shortly after assuming the corner office from Terry Leahy that Tesco would break even with Fresh & Easy by February 2013. However, he added a year to his promise earlier this year, after Tesco reported a $249 million fiscal year loss at Fresh & Easy, which was a mere $4 million less than it lost on the grocery chain two years prior.

Mass Firings
Yesterday Fresh & Easy issued pink slips to between 40-50 employees at its corporate headquarters in El Segundo. The firings are designed to help Tesco cut its way to break-even with what former CEO Terry Leahy hoped and insisted (he still says it will be a success) would be the global retailer's American dream - Fresh & Easy.

But in the five years since Tesco launched Fresh & Easy it has invested around $2.3 billion and lost about $1.5 billion on the fresh food and grocery chain. The losses continue to the tune of nearly $5 million a week.

Tesco's original plan was to have at least 500-600 Fresh & Easy stores operating by now, on the way to 1,000 units in six to seven years from the November 2007 launch. Five years on there are 199 Fresh & Easy stores in California, Nevada and Arizona.

The firings yesterday were across the board rather than focused primarily on the real estate department as Tesco and Fresh & Easy's public relations representatives told various publications who reported it that way. There is a focus on real estate and construction but employees let go span the departments, from IT and operations to commercial.

Reducing Hours at 33 Stores

In a second attempt at cost-cutting - and this is the first time it's being reported anywhere - Fresh & Easy plans to reduce the store hours at 33 stores beginning soon. At present plans call for opening those stores at 9 a.m. instead of 8 a.m., and closing the poor-performing grocery markets at 8 p.m. instead of 10 p.m. Currently the standard hours for all stores is 8 a.m. (a few units open at 7 a.m.) to 10 p.m.

As part of this move, there will be some store-level firings and reductions in worker-hours at the 33 Fresh & Easy stores. Fresh & Easy Neighborhood Market, which hires all its store-level non-management workers on a part-time basis, has already been reducing hours of store employees chain-wide as part of its cost-reduction program designed to help it stop the bleeding at the fledgling grocery chain.

I'm also told by sources in positions to know such things that Fresh & Easy plans to cut some store-level jobs in existing units (besides the 33 stores) that have workers who came on board from the nearly 30 Fresh & Easy units that have been closed over the last couple years. Fresh & Easy absorbed these employees from the closed stores, which added to its labor costs.

And More

An additional move - what I call tinkering around the edges in terms of cost-cutting - Fresh & Easy also plans to eliminate the "Kitchen Table" food sampling stations in the few stores where they remain. (The grocery chain started a program to eliminate these stations in 2011 and replace them with mobile carts but still has some stores with the fixed food sampling kiosks.) The "Kitchen Table" fixed-kiosks are staffed full-time by an employee, hence their elimination in stores where they remain.

The headquarters firings have been a long time coming. Why? Not because the workers didn't do their jobs but because, as we've been saying regularly for years in the blog, the Fresh & Easy model and business just doesn't, in its present incarnation and management, have the legs to achieve break-even in any other way but by making massive operational expense cuts -- and that's what Tesco has essentially concluded. Fresh & Easy has also from the beginning been overloaded with senior and middle management for a chain its size.

Meanwhile, moral at Fresh & Easy's corporate office in El Segundo is lower than it's ever been, according to numerous employees who work there, despite whatever spin its CEO and public relations staff may put on it. I know of numerous employees there looking for new jobs. Some have even created a saying, "The interns are taking over," reflecting Fresh & Easy's growing use of the college students and recent graduates throughout the headquarters operation.

Moral is down at store-level as well. For example, I know of a group of top managers who, frustrated by Fresh & Easy senior managements inability to improve the chain's performance, have been meeting to talk about whether or not they have a future at the grocery chain.

Here's what one store manager told me today, in fact: "Having talked to many store managers today, the feelings are not good.  Most of the talk is around what we should do. Stick it out or get out now?  The consensus was it's time to start seriously looking. A few people are hoping to be bought by someone else."

The firings at corporate headquarters and other changes detailed in my piece are just the beginning at Tesco's Fresh & Easy. More cost-cutting is coming, as are other changes.

The cost-cutting is all about Tesco being able to show some progress in terms of reporting less of a loss (than last half year) for the upcoming fiscal half year. If it achieves that, Tesco can tell the many investment firm analysts who follow it, who will then report it to their investor-clients, that progress is being made. CEO Clarke needs this because it's crunch time - he can't remain credible if he were to change the break-even date for Fresh & Easy once again, say to February 2015 instead of February 2014, for example.

But CEO's are supposed to be big picture, policy guys - that vision thing, as former U.S. President George H.W. Bush liked to call it - not bean counters. Therefore, Philip Clarke should be asking himself one central question, which is: 'What is my vision for Fresh & Easy Neighborhood Market in America and how can Tesco achieve it?' But what, in my opinion, Clarke is probably asking himself is this: 'Can I get Fresh & Easy to break-even by February 2014, as I've publicly said I would, and then find a buyer for it?'

-The Insider

[Editor's Note: Fresh & Easy Buzz is an independent Blog, and is not affiliated with Tesco, Tesco's Fresh & Easy Neighborhood Market, or any of its competitors. No member of the Fresh & Easy Buzz editorial team has ever or currently works for Tesco or its Fresh & Easy Neighborhood Market chain.]

Tesco CEO Terry Leahy Retiring; Philip Clarke New CEO; Tim Mason Named Deputy CEO But Will Remain Fresh & Easy Neighborhood Market Chief in U.S.

Tesco plc, which owns Fresh & Easy Neighborhood Market USA, announced today that CEO Sir Terry Leahy (pictured above in a contemplative moment) will retire in March 2011. Leahy will be 55 years-old then, and will have served 14 years as CEO of the United Kingdom-based global retailer.

In making the announcement today, which was a surprise to even those of us who follow Tesco closely, Tesco plc chairman David Reid said: "Terry (Leahy) has made an unrivalled contribution over a prolonged period. He is undoubtedly one of the leading businessmen of his generation. He has put in place a strategy which can secure the progress of Tesco for years to come."

Philip Clarke (pictured above), 50, the head of Tesco's European and Asian retail operations, it's second-largest division after the UK, will replace Leahy as CEO when he retires next year. Clarke has worked at Tesco throughout his career, spending many years in retail and commercial (buying and merchandising). He joined the Tesco plc Board in 1998 and currently has responsibility for the group's growing international operations in Asia and Europe as well as for Tesco's information technology operations, the retailer said in its announcement today.

"I am honoured and delighted to succeed Terry who has taught me so much. I am very excited by the opportunity to lead such a fantastic team of executives, many of whom I've worked with for years. Together we will build a global business which focuses on the customer and fully respects our people, our communities, our supply chain and our shareholders," Clarke said today about becoming Tesco's new CEO in March of 2011.

Additionally, Tim Mason (pictured above), 52, the president and CEO of Fresh & Easy Neighborhood Market USA, will become deputy CEO of Tesco plc when Sir Terry retires in March 2011 and Clarke succeeds him, and given the additional responsibility for corporate branding and values and climate change initiatives, along with retaining his position as CEO of Fresh & Easy and remaining in the U.S. at the grocery chain's headquarters in El Segundo, California.

Prior to coming to America as CEO of Fresh & Easy Neighborhood Market in 2006 (the first Fresh & Easy stores opened in November 2007), Mason was Tesco plc's corporate director of marketing in the UK. As such, giving him the new overall corporate responsibilty for Tesco's branding makes sense in that experiential background regard. Terry Leahy was a director of marketing at Tesco prior to becoming its CEO, and was a mentor to Tim Mason when he started in the retailer's marketing department.

Tesco's corporate values and climate change areas have been central to CEO Leahy's tenure as CEO. For example, he's expended considerable effort in building a "Tesco" corporate culture since taking over as CEO 14 years ago, making it one of his chief leadership goals.

Additionally, Sir Terry has been in the forefront of grocery industry CEO's globally on the issue of climate change. For example, he's the first, and still only, food retailing industry CEO to have created an initiative in which many of the products on Tesco store shelves in the United Kingdom have "carbon footprint" shelf signs, which indicate an item's carbon footprint from field or factory to store shelf.

Leahy also has been an outspoken advocate in the UK and globally for creating corporate and government public policy responses to climate change. The fact he's intrusting this responsibilty to Tim Mason, who is the son-in-law of Leahy's mentor, former Tesco CEO Lord MacLaurin, suggests he sees Mason as his heir apparent at Tesco in these two areas - climate change and corporate culture. [Suggested reading: September 8, 2008: Tesco PLC CEO Terry Leahy: 'We Must Go Green' December 31, 2008: 'Green' Retailing: Tesco Scores Second Overall, Number One Among Food and Drug Chains, in Ceres Coalition's Climate Change Corporate Scorecard]

In the announcement today, Tesco CEO Leahy said about his March 2011 retirement: "When I became CEO I had a plan to build Tesco around its customers, to make it number one in the UK and to find new long term growth in non-food, in services and in international expansion. I wanted to develop a purpose and values that could sustain Tesco through its challenges and encourage and grow future leaders. It has taken 14 years but that strategy has become a firm reality now and so I feel my work is almost complete."

Commenting on the naming of Phil Clarke as his replacement, Sir Terry said: "I am delighted Phil Clarke has accepted the role of CEO from March 2011. I have worked with Phil at Tesco for many years and I am confident he has all the necessary talent, energy and experience to take the group forward. He will be supported by an outstanding team of senior executives who together represent one of the strongest leadership teams in the world of retailing. 'There is no better job than leading Tesco and after retirement I will concentrate mainly on private investment. I will, of course, keep a large shareholding in Tesco and remain its biggest supporter."

An interesting note: Terry Leahy and Philip Clarke both were raised in Liverpool, England, also home of those famous lads called the Beatles. Both CEo Leahy and CEO-apparent Clarke also worked at Tesco stores stocking shelves and the like while in high school.

Leahy said today he has no plans to be a non-executive member of Tesco's board when he retires in March 2011. He says his plans are to be an investor globally. We've heard from more than one good source today that Sir Terry has a big interest in investing and getting involved in companies in the rapidly-growing "green" energy, technology and related environmental industries. If so, this would allow him to focus the next phase of his business career to a large degree in the area of climate change, which as mentioned he's put a substantial focus on as CEO of Tesco. And at only 55 that second career phase could be a very long one.

Leahy is also a big supporter of the Everton Football Club and even a special advisor to the team. Perhaps he will have even more time to participate in what is one of his favorite activities - British football and the Everton lads- when he retires in March 2011?

Tesco also announced some additional executive changes that will take place in March 2011 when CEO Terry Leahy retires. Those changes are:

>David Potts, 53, will become the first CEO of Tesco's fast-growing Asia business. He is currently the corporate director of retail and logistics in the UK, as well as having responsibility for the Republic of Ireland. Clarke, who will become CEO in March 2011, currently heads up both the European and Asian operations.

>Richard Brasher, 49, currently Tesco's corporate commercial (buying and merchandising) director, will assume the newly-created role of CEO of the UK business and take responsibility for the Republic of Ireland, a position which will open up when David Potts assumes his new position in March 2011.

Additionally, Tesco said Andrew Higginson, 52, will continue as CEO of corporate retail services, which include the company's Tesco Bank, Tesco Telecoms division, its internet business and its loyalty marketing services firm Dunnhumby. Laurie McIlwee, 48, will continue as Tesco's finance director and Lucy Neville-Rolfe, 57, will continue as corporate and legal affairs director.

The company also said Trevor Masters will continue as CEO of its Central Europe and Turkey retail operations after the March 2011 changes, and in a new position Gordon Fryett will head up Tesco's property and real estate department across the group. A new group commercial (buying and merchandising) role will also be created, Tesco said, without being specific about the nature of the position.

Fresh & Easy Buzz will be offering some analysis of the retirement of Tesco CEO Terry Leahy, and the ramifications of it and all the changes announced today on Tesco plc and its Fresh & Easy Neighborhood Market USA chain, in the days and weeks to come. Stay tuned.

Biographical sketch of Philip Clarke, who will replace Terry Leahy as CEO of Tesco plc in March 2011. Source: Tesco plc:

Phil Clarke first worked for Tesco in 1974 as a part-time assistant while he was still at school in Liverpool.

Clarke then joined Tesco's management training scheme after reading Economics at Liverpool University.

He has broad Tesco experience as a store manager, a buyer, a marketeer and as an international executive.

Clarke joined Tesco plc's Board 12 years ago with responsibility for the Supply Chain; IT was added a year later. In January 2004 he took over responsibility for International Operations and retained IT.

He is now responsible for almost 2000 stores and nearly two-thirds of group space. He has been at the heart of all our new moves and operational improvements across Asia and Europe in recent years, including China, India and Turkey, building teams and developing talent in these important markets.

Clarke has been a Non-Executive Director of another FTSE company, Whitbread PLC, since November 2005 and is a member of the board of ECR Europe.

Philip Clarke is married with two children and lives in Hertfordshire, UK.

Walgreens Announces Hiring of Former Fresh & Easy Fresh Foods Director Jim Jensen; Confirms Our January 6 Report

On January 6, 2010 Fresh & Easy Buzz was first to report that Jim Jensen had left his position as director of fresh foods at Tesco's Fresh & Easy Neighborhood Market, and was taking a similar position at the Walgreens drug chain. Our Report - Wednesday, January 6, 2010 Breaking Buzz: Corporate Director of Fresh Foods Jim Jensen Leaves Tesco's Fresh & Easy.

Additionally, see our follow-up piece - Friday, January 15, 2010: Just-Exited Tesco Fresh & Easy Fresh Foods Director Jim Jensen to Head New Fresh Foods Initiative at Walgreens Drug Chain.

Today, Thursday, January 21, Walgreens announced in a statement it has hired former Fresh & Easy fresh foods director Jim Jensen to head up its fresh foods program, confirming our early reports.

Here's a report on Walgreens announcement from Dow Jones Newswires published in today's Wall Street Journal - January 21, 2010: Walgreen Taps New Executive For Venture Into Fresh Food

Numerous other business and industry trade publications will be reporting the story today and tomorrow now that Walgreens has publicly announced the move in a press release...

But Fresh & Easy Buzz readers learned the news 15 days ago when we broke it on the Blog.

Fresh & Easy Buzz has been reporting on and writing about Walgreens' increased food and grocery product merchandising emphasis - and its connection to Tesco's Fresh & Easy - long before the recent spate of coverage in the mainstream press and in other Blogs came about in the last couple days.

For example, below is a bibliography of just a few of the related stories from Fresh & Easy Buzz on the topic going back as far as well over a year ago. There are links at these posts to other related stores from the Blog as well.

>January 22, 2009: Neighbors by Location Only: Will Mega-Drug Chain Walgreens' New Focus on Consumables and 'Affordable Essentials' Rob Sales From Tesco's Fresh & Easy?

>December 22, 2008: Drug Chain Walgreens to Slow New Store Growth; Despite Tesco Fresh & Easy's Recent Announcement to Do Similar, We Suggest An Analogy is Misplaced

>December 22, 2008: Breaking News: Mega-Drug Chain Walgreens Hires Former Tesco Fresh & Easy USA VP of Operations Brian Pugh For New VP of Format Development Position

>Monday, September 22, 2008: Key Personnel Breaking News: Co-Vice President of Retail Operations Brian Pugh No Longer Employed At Tesco Fresh & Easy Neighborhood Market

[Editor's Note: Fresh & Easy Buzz will have more to come in the following days on Walgreens' move into fresh foods merchandising. Stay tuned.]

Breaking Buzz: Corporate Director of Fresh Foods Jim Jensen Leaves Tesco's Fresh & Easy

Jim Jensen, the director of fresh foods for Tesco's Fresh & Easy Neighborhood Market, has left the company, Fresh & Easy Buzz has learned.

According to our sources, Mr. Jensen left Fresh & Easy on December 30. He is no longer employed by Tesco plc in any capacity.

Sources tell us Jim Jensen left Tesco's Fresh & Easy Neighborhood Market to accept a new position with the Walgreens drug chain at its corporate headquarters in Illinois.

Interestingly, if Jim Jensen does join Walgreens, as our sources tell us he is, he will join another Tesco Fresh & Easy alum, former vice president of retail operations Brian Pugh.

Mr. Pugh left Fresh & Easy in September 2008. [September 22, 2008: Key Personnel Breaking News: Co-Vice President of Retail Operations Brian Pugh No Longer Employed At Tesco Fresh & Easy Neighborhood Market] and joined Walgreens as a vice president in December of 2008. [December 22, 2008: Breaking News: Mega-Drug Chain Walgreens Hires Former Tesco Fresh & Easy USA VP of Operations Brian Pugh For New VP of Format Development Position]

Jim Jensen became director of fresh foods at Fresh & Easy Neighborhood Market's corporate headquarters in El Segundo, (Southern) California just 17 months ago, when he was promoted to that position from his then position as category manager for bakery. Bakery is part of the fresh foods department. [Read our August 17 and August 22 stories here for additional background: [August 17, 2008: Special Report: Tesco Fresh & Easy's Director of Grocery Returning to the UK; Grocery Chain Reorganizing its Corporate Buying Department] August 22, 2008: Special Report: Today Last Day For Fresh & Easy Neighborhood Market Director of Grocery Charlotte Maxwell; Moving Back to Tesco in the UK]

Tesco's Fresh & Easy breaks its corporate merchandising and buying function (which it calls commercial, using the British term) into two functional departments: Grocery and Fresh. Each department is headed by a director, which are the top corporate operational merchandising and buying positions at corporate headquarters.

All of the merchandising and buying department category managers report to the two directors.

The two directors of grocery and fresh report to the vice president of commercial (corporate merchandising and buying).

The grocery merchandising-buying department includes all packaged food and grocery items, along with non-foods.

The fresh department includes fresh produce, meats, bakery, other perishables and the grocer's ready-to-eat and ready-to-heat fresh, prepared foods (entrees, side dishes, ect.)

Tesco's Fresh & Easy has yet to name a replacement for Mr. Jensen, according to our sources.

Jim Jensen is the second merchandising-buying director to leave Tesco's Fresh & Easy in the last 17 months.

Charlotte Maxwell, the former director of grocery merchandising, left her position in August 2008.

Ms. Maxwell was replaced by the then director of fresh foods, Sean McCurley.

Jim Jensen was then promoted to director of fresh foods, filling Mr. McCurley's position.

As we've reported in the past, Tesco's Fresh & Easy has experienced considerable employee turnover in its corporate merchandising and buying departments since 2007, with numerous category managers and buyers leaving the company. [August 17, 2008: Special Report: Tesco Fresh & Easy Neighborhood Market Experiencing A Category Manager and Buyer 'Brain Drain']

One of our sources tells us Tesco could replace Jim Jensen at Fresh & Easy's El Segundo, California corporate headquarters with a merchandising-buying executive from Tesco headquarters in the United Kingdom. However no replacement has yet been named, based on our information.

Related Stories From Fresh & Easy Buzz:

December 25, 2009: It's 'British Invasion: The Sequel Down Under' For Former Tesco Fresh & Easy Neighborhood Market Director of Grocery Charlotte Maxwell

August 17, 2008: Special Report: Tesco Fresh & Easy Neighborhood Market Experiencing A Category Manager and Buyer 'Brain Drain'

August 17, 2008: Special Report: Tesco Fresh & Easy's Director of Grocery Returning to the UK; Grocery Chain Reorganizing its Corporate Buying Department

August 22, 2008: Special Report: Today Last Day For Fresh & Easy Neighborhood Market Director of Grocery Charlotte Maxwell; Moving Back to Tesco in the UK

September 22, 2008: Key Personnel Breaking News: Co-Vice President of Retail Operations Brian Pugh No Longer Employed At Tesco Fresh & Easy Neighborhood Market

December 22, 2008: Breaking News: Mega-Drug Chain Walgreens Hires Former Tesco Fresh & Easy USA VP of Operations Brian Pugh For New VP of Format Development Position

March 2, 2008: Walgreens Promotes Former Tesco Fresh & Easy Exec Bryan Pough to VP Merchandising Position; Move Fits Drug Chain's Current Strategic Focus

March 12, 2008: Breaking News: Tesco plc. Makes Major Personnel Change to Fresh & Easy Neighborhood Market USA Senior Management Team

May 29, 2008: Tesco Makes Official Announcement of Jeff Adams' Title and Position at Fresh & Easy Corporate; Confirms Our Report of March 5

January 22, 2009: Neighbors by Location Only: Will Mega-Drug Chain Walgreens' New Focus on Consumables and 'Affordable Essentials' Rob Sales From Tesco's Fresh & Easy?

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