Showing posts sorted by relevance for query Fresh & Easy Fresno. Sort by date Show all posts
Showing posts sorted by relevance for query Fresh & Easy Fresno. Sort by date Show all posts

Wednesday, September 15, 2010

Two New Fresh & Easy Neighborhood Market Stores Open in Fresno, California Region Today

Customers wait to enter the New Fresh & Easy store in Fresno, California this morning. The grand opening started at 10 am.

Tesco's Fresh & Easy Neighborhood Market opened its two newest stores this morning to waiting crowds.

The two new markets, which make 165 Fresh & Easy stores as of today, are located in the Fresno Metropolitan region in California's Central Valley.

One store is in Fresno, in a shopping center on the southeast corner of Cedar and Shields avenues. The address is: 3040 North Cedar Avenue. The second Fresh & Easy market is right next door to Fresno, in Clovis. The Clovis store, the second Fresh & Easy unit in the city, is on the northwest corner of Herndon and Fowler avenues, at 1725 Herdon Avenue.

Grand opening celebrations, which started this morning at 10 am, are currently going on at both stores.

Tesco's Fresh & Easy Neighborhood Market now has seven stores in the Fresno Metropolitan region. In addition to the two stores in Clovis, the opening of the new store today in Fresno makes a total of four Fresh & Easy units for Fresno. There's also a Fresh & Easy Neighborhood Market fresh food and grocery store in Reedley, which is in the Fresno Metro region.

Seven & Seven [stores] for the Central Valley

In addition to its seven stores in the Fresno region in California's Central Valley, Tesco has seven Fresh & Easy Neighborhood Market locations farther south in the valley, in the Bakersfield region. Five of the seven stores are in Bakersfield; one is in nearby Wasco; and the other in Delano.

Fresh & Easy by the (store) numbers - and regions

Below is a tally, as of today, of the 165 Fresh & Easy Neighborhood Market stores by region:

~Southern California
=90 stores

~Central Valley, California/Bakersfield region
=7 stores

~Central Valley, California/Fresno region
=7 stores

~Metropolitan Las Vegas, Southern Nevada
=27 stores

~Metropolitan Phoenix, Arizona region
=34 stores

~Total Number stores = 165

Three new stores opening next week

Three new Fresh & Easy markets are set to open on Wednesday, September 22.

All three of the markets are in the San Diego Metro region in Southern California. Two of the stores are in Oceanside and one unit is in San Diego. The locations of the stores are:

>32nd Street & University Avenue, San Diego, California
>River Road. & College Boulevard, Oceanside, California
>College Boulevard & Oceanside Boulevard, Oceanside, California

The September 22 openings are the last three new stores, of the nine units that will have been opened by Tesco's Fresh & Easy this month, set to open in September. At the end of September, Fresh & Easy Neighborhood market will have 168 stores open and operating in California, southern Nevada and Metro Phoenix, Arizona.

Fresh & Easy Buzz has been calling this month 'Big Bag' September for Fresh & Easy Neighborhood Market because of the high number - nine - stores it's opening this month.

But the fresh food and grocery chain didn't open any new stores in May, June, July or August 2010, instead it bunched them all up for openings this month - hence the 'Big Bang' title, so to speak. We reported Tesco's Fresh & Easy was doing this in a June 25, 2010 story: A Four Month Pause: No New Fresh & Easy Neighborhood Market Stores Set to Open Until September 2010].

Therefore, the high number of openings this month should be viewed in this light. For example, if the grocer opened just one new store a month, from May through August, and two stores this month, it would have achieved the same results, a total of nine new stores open and operating by the end of September 2010.

Fresh & Easy has followed this new store opening "bunching up" strategy all year.

To learn what the grocer did from February -to- April of this year in terms of new store openings, read our stories linked at the end of the piece here.

October 2010 openings

As of today, Tesco's Fresh & Easy hasn't announced any new store openings for October.

As we've previously reported, so far, according to our sources, three new stores are planned for October 2010 openings. However, new store openings are a moving target at Fresh & Easy Neighborhood Market headquarters in El Segundo, California. Therefore the number of new stores to be opened in October could increase before the grocery chain makes an announcement, which should be coming soon. Our reporting and planned number of new stores, three, is only as of today.

Related Stories:

September 8, 2010: Fresh & Easy Neighborhood Market Hits (and Breaks) the 100-Store Mark in California With Today's Openings

September 7, 2010: 'Big Bang' September: First Four of Nine New Fresh & Easy Neighborhood Market Stores Opening on September 8

July 14, 2010: Fresh & Easy Neighborhood Market Confirms Our June 25 Report it Will Open Nine New Stores in September 2010

June 25, 2010: A Four Month Pause: No New Fresh & Easy Neighborhood Market Stores Set to Open Until September 2010

June 1, 2010: No New Fresh & Easy Neighborhood Market Stores Likely This Month

May 1, 2010: No New Fresh & Easy Neighborhood Market Stores Set to Open This Month

March 30, 2010: Tesco Set to Open 11 New Fresh & Easy Neighborhood Market Stores in April

March 29, 2010: Tesco's Fresh & Easy Set to Hit 150-Plus Store-Count Mark on April 7

March 16, 2010: A New Fresh & Easy Store Opens in Las Vegas Tomorrow on St. Patrick's Day; Will Tesco CEO Sir Terry Leahy's Proud Irish Eyes Be Smiling?

March 7, 2010: Three New Fresh & Easy Stores Opening This Month; First Opening March 10 in Palm Springs, California

January 27, 2010: February New Store Opening 'Big Bang' For Tesco's Fresh & Easy; Nine New Stores So Far

February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

Thursday, January 14, 2010

UFCW Union Launches Informal Boycott of Fresno CA Fresh & Easy Stores Today; One Day After the Stores Open

UFCW members picket at the Fresh & Easy store in Manhattan Beach, California on grand opening day, July 2, 2008. Read story here.

The United Foods & Commercial Workers union Local 8-Golden State, based in Roseville, California near Sacramento, launched informational picket lines at three of Tesco's Fresh & Easy Neighborhood Market stores in the cities of Fresno and Clovis in California's Central Valley today, just one day after the fresh foods and grocery chain opened the three stores in the two cities Wednesday morning.

The three Fresh & Easy stores are located at 2820 Tulare St. and 8059 N. Cedar Avenue in Fresno, and at 790 Shaw Avenue in Clovis. Clovis is a suburb of Fresno and is located right next door to the city.

Tesco also opened a Fresh & Easy market in nearby Lemoore in early December 2009. There are currently four Fresh & Easy stores in the Fresno region. An additional store is set to open next month in Fresno at 2047 West Shaw Avenue. More stores will be opening, likely in late February and early March.

Jacques Loveall, President of UFCW Local 8-Golden State, says the grocery clerks' union is asking shoppers in Fresno and Clovis not to shop at Fresh & Easy and to shop instead at UFCW- unionized grocery stores such as Save Mart, Food Maxx (Both owned by Modesto, California-based Save Mart Supermarkets) Kroger-owned Foods Co, Safeway Stores-owned Vons, local independent Ronnie’s Midway market and the local outlets of the Rite Aid drug chain.

"Tesco, which is Fresh & Easy’s parent company in the United Kingdom, is siphoning money out of our community," Loveall says, regarding the union's informal picketing of the three Fresno-area Fresh & Easy stores. "We are responding to that provocation."

The union local president added: "California has enough challenges without a foreign company (Tesco) coming in with substandard jobs that threaten good local companies that bring value and good jobs to our community. It’s bad enough good American jobs are exported overseas at an alarming rate. Now this global giant from the UK is coming to our country thinking it can take advantage of American workers on our own turf. We will not allow that to happen."

Loveall says Tesco's Fresh & Easy poses a threat to unionized food and grocery market share and to the living standards of UFCW union members' wages and benefits.

"Our members are prepared to do whatever it takes to ensure that workers at Fresh & Easy have the same access to the good pay, health care, pension and job security that are enjoyed by Union members," the UFCW union local president says.

The UFCW union has been campaigning against Tesco's non-union status with Fresh & Easy for over two years, as we've reported on and written about extensively for that period of time in Fresh & Easy Buzz. [Our first report was in 2007 here: UFCW Union to Organize Fresh & Easy Clerks in 2008.]

In late September 2009 UFCW Local 8-Golden State launched an informal picketing campaign at three then recently-opened Fresh & Easy stores in the Bakersfield, California region. Two of those stores are in Bakersfield; one at 11100 Olive Drive and the other at 5190 Stockdale Hwy. The third Fresh & Easy store is at 611 Cecil Avenue in nearby Delano. Bakersfield is south of Fresno in the southern Central Valley.

In 2008 the UFCW conducted a very aggressive multi-strategy tactical campaign against Tesco's Fresh & Easy. That campaign included: picketing at Fresh & Easy stores in Southern California, Arizona and Nevada; a multi-media public relations campaign in both the U.S. and UK; the authoring of a shareholder resolution at Tesco's annual meeting in the United Kingdom against Fresh & Easy's non-union status, which failed to pass; along with various other tactics to attempt to get Tesco to open Fresh & Easy to the union.

The UFCW union even was able to get then candidate and now President Barack Obama to sent a letter to Tesco requesting it open Fresh & Easy to union representation, as we reported in this June 2008 story.

Tesco's official position has been that it's the choice of the Fresh & Easy store-level employees, which are the workers the UFCW is attempting to unionize, to vote in favor of UFCW representation if they choose to but that the company has no position pro or con unionization for Fresh & Easy retail employees.

In September 2008, as we reported in this story [September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market] employees of the Fresh & Easy market in Huntington Beach in Southern California asked Fresh & Easy's senior management for recognition as a UFCW union shop.

But as we reported in this story in early October [October 2, 2008: Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election] Fresh & Easy's corporate management denied the store workers' request, which isn't an unusual conclusion in such matters.

No open ballot election has taken place for the Huntington Beach Fresh & Easy store employees to date. Our union sources told us last year that the main reason from their end for this is because they were waiting for the U.S. Congress to take up the Employee Free Choice Act legislation, which many thought Congress would do in 2009. However, health care reform prevented Congress from putting the legislation, also called "Card Check," on the agenda. It is expected to be debated this year.

A Fresh & Easy Buzz correspondent talked to a couple employees at the Huntington Beach Fresh & Easy in fall 2009 regarding the union issue. The consensus of the employees was that joining the union had sort of fizzled out as a priority for the workers because of the recession and high unemployment rate, particularly in Southern California. However, we also know the idea of being able to start the unionization process with Fresh & Easy with that one store is far from dead among UFCW organizers.

The UFCW's aggressive unionization campaign against Tesco and its Fresh & Easy chain went rather silent in late 2008, and remained that way for all of 2009.

The UFCW union's public relations media campaign came basically to a halt. The UFCW even stopped updating the Web Site and Blog - fresh & easy facts - it's used against Tesco's Fresh & Easy in the campaign. For example, it hasn't updated the articles part of the site since June 2008.

We don't see signs that the UFCW's campaign to unionize Tesco's Fresh & Easy is about to return to its aggressive 2008 stance anytime soon.

However it's important to note that Local 8-Golden State is one of the strongest and most successful of all the UFCW locals nationwide in terms of organizing and contract negotiations with existing unionized supermarket chains.

For example, in Northern California and the Central Valley, the local's territory, all of the leading supermarket chains - Safeway (Safeway and Vons), Kroger-owned Foods Co and what's left of Cala Foods, Raley's (Raley's, Nob Hill, Bel Air and Food Source) Save Mart (Save Mart, Lucky and FoodMaxx), Albertsons - and most of the small chains, multi-store independents and even many larger single-store independents are unionized.

What the local has been unable to do, even though its region is arguably the strongest unionized grocery market in the nation, is to be able to force non-supermarket food retailing operators like Walmart, Whole Foods Market, Trader Joe's, Winco Foods and a couple others to unionize, although it has tried and continues to try to do so.

There's significant pressure on the UFCW to unionize these chains, particularly in California, because the union chains like Safeway, Kroger and the others, are coming under continued pressure from these non-union operators in terms of increased competition and encroachment on market share. This is a fact the CEO's of Safeway, Kroger, Stater Bros., Save Mart, Albertson's, Raley's and the other chains with operations in California have made clear via their representatives to the union in contract negotiations.

Fresno could be the new battle ground for the UFCW's continued efforts to unionize the store-level employees of Tesco's Fresh & Easy. But thus far the union's efforts in Southern California, Arizona and Nevada haven't born fruit. We will be falling the developments closely. Stay tuned.


[Readers: Click here and here for an extensive selection of past Fresh & Easy Buzz coverage of the UFCW and Tesco Fresh & Easy unionization issue and related topics. Notice the various links to other stories at the posts at the two links above as well.]

Wednesday, July 23, 2008

Fresno, California Fresh & Easy Grocery Store to Be First in Chain to Include Local, Community and Neighborhood Design Elements and Features


The Fresno, California City Council last night approved plans for an approximately 15,000 square foot Tesco Fresh & Easy Neighborhood Market at 2820 Tulare Street in the Central Valley city in California.

The 2820 Tulare Street location is the site of Fresno's historic old Hofbrau restaurant, pictured at top, which once was a city landmark famous for its generous portions of roasted beef, turkey, ham, pastrami and other meats and side dishes, along with its numerous varieties of cold draft beers, before it was closed down.

Fresh & Easy Buzz has learned the Tesco Fresh & Easy Neighborhood Market at the old Hofbrau location in Fresno will be the first store in which the grocery chain plans to incorporate local, community and neighborhood elements into the design theme of, which is something we've been suggesting since January Tesco do with its Fresh & Easy stores.

Plans for the Fresh & Easy grocery market going into the old Hafbrau include the store having a clock tower as part of the design, a masonary facade and murals which reflect the historic and cultural nature of Fresno and the 2820 Tulare Street neighborhood.

Including local (community and neighborhood) design features, including using murals with a local flair, is something Fresh & Easy Buzz has suggested in numerous blog pieces Tesco do with its Fresh & Easy stores in order to localize them, better fit into the communities and neighborhoods where it has its stores, and create a better "sense of place" to enhance the shopping experience in the stores for customers.

A member of the Fresno planning department told Fresh & Easy Buzz Tesco wants the store to fit into the historic elements of the neighborhood, as well as play up on the old Hafbrau's historic home there.

We've argued for a number of months that it's important--and will lead to greater success for the grocery chain--for Tesco to localize some of the design elements of its stores so as to respect and reflect the history and culture of the communities and neighborhoods it locates its small-format, combination grocery and fresh foods markets in because doing so will make the retailer not only a more accepted member of the neighborhood, but will pay dividends in the form of increased sales and customer loyalty in return.

As we were the first publication to report on March 17 (with a detailed follow up piece in May), Tesco plans to open at least an initial five Fresh & Easy grocery stores in the Fresno Metropolitan region, and likely will open additional stores in the region down the road. The first Fresbo market region stores should start opening in early 2009.

We haven't heard anything from our Fresno sources, both within the city government and in the commercial real estate and business community in the city, about any of the other four planned Fresno region Fresh & Easy stores having localized design enhancements like plans call for the 2820 Tulare Street store going into the old Hofbrau to have. We are continuing to investigate that aspect however.

Meanwhile, based on the overview we received from a source who was at last night's Fresno City Council meeting, it appears the plans for the old Hofbrau building Fresh & Easy grocery store are singularly unique compared to the 63 small-format grocery stores the grocery chain has opened thus far in that the retailer is taking some local community and neighborhood elements and aspects into consideration in the design of the store, rather than it being a cookie cutter-designed grocery market like the current stores, the majority of which have gone into remodeled existing buildings, are.

Like we've been suggesting since December, 2007--localization of some elements of a grocery store's design, along with some aspects of its product mix, is key in today's food retailing and local consumer-conscious society. Or, as the late, longtime former Speaker of the U.S. House of Representatives Thomas "Tip" O'Neill used to say when asked to explain his fabulous success in politics..."Everything is local."

A Selection of Past Fresh & Easy Buzz Posts about Fresh & Easy Neighborhood Market and the localization of store design:











Friday, July 16, 2010

South Los Angeles Fresh & Easy Neighborhood Market Store to Accept WIC Vouchers July 29; Additional California Units to Follow

[Photo credit: Fresh & Easy Neighborhood Market.]

Breaking Buzz

We reported on July 7, 2010 in this story - Tesco's Fresh & Easy Neighborhood Market to Start Accepting WIC Vouchers at Central & Adams Store in South Los Angeles This Month - that the Fresh & Easy Neighborhood Market store at 1025 East Adams in South Los Angeles, California (pictured at top) would start accepting WIC Vouchers (Woman, Infant & Children Program) this month.

We can now report that the store, located at Central and Adams in South Angeles, will start accepting WIC Vouchers on Thursday, July 29.

Additionally, Tesco's Fresh & Easy Neighborhood Market will start excepting WIC Vouchers at numerous other Fresh & Easy grocery stores in California - including additional units in Southern California, as well as at stores in the Bakersfield and Fresno regions in the Central Valley - starting 30-45 days after the South Los Angeles store's July 29 start date, Fresh & Easy Buzz has learned. The current internal target date is to have some of the additional stores accepting the vouchers one month from July 29.

Interestingly, read what we wrote in the three paragraphs (in italics) below, from our July 7, 2010 story:

According to our sources, the south Los Angeles store will be the only one of Tesco's current 159 Fresh & Easy stores that will accept the WIC Vouchers for a while. Sort of a test. But if all goes well - and it should since 99% of the grocery stores in California have been accepting WIC Vouchers for as long as the program has existed - its likely Fresh & Easy Neighborhood Market will then start accepting the vouchers in some of its other stores, beginning with those in low-income neighborhoods like in Compton.

Were we Fresh & Easy, we wouldn't wait very long to roll out the acceptance of WIC to all 159 stores. Why wait? It's an accepted method of payment to nearly all grocers in the United States. A number of convenience stores even accept WIC, as do a growing number of farmers markets.

In fact, we suspect once Fresh & Easy sees the nice sales boost it gets at the Central & Adams store on WIC-eligible items (and thus an overall store sales boost) like infant formula, whole milk, juice, eggs, cheese, whole grain breads and cereals, peanut butter, beans and legumes, fresh produce and more, it just might (or at least should) want to accept WIC right away at its other stores.

The Central and East Adams Fresh & Easy market in South Los Angeles will be the first store in the chain of 159 units to accept WIC Vouchers, as we've previously reported.

Including the Bakersfield and Fresno regions in the WIC Voucher-acceptance roll out will benefit Fresh & Easy in the form of added sales at the stores it designates to accept WIC in the two Central Valley regions. In fact, as we've said since 2008, the fresh food and grocery chain should accept WIC at every one of its stores in California, Nevada and Arizona.

Based on a recent analysis we completed of WIC usage patterns at grocery stores in the Central Valley region, we believe Fresh & Easy could increase its overall sales in the Fresno and Bakersfield regions by at least 5% overall by accepting WIC at all the stores.

California's Central Valley has been one of the hardest hit regions in the U.S. in terms of high unemployment and added poverty since the recession hit three years ago. For example, the unemployment rate in the region currently ranges from 15% -to- 20%, depending on the county. That's compared to an overall rate of 12.6% in California. Much of the Central Valley, like South Los Angeles (and other parts of Southern California), also suffers from high non-recession rates of poverty.

Additionally, the Central Valley, including the Bakersfield and Fresno regions, has among the highest percentage of WIC Voucher users in California. The vouchers are distributed by California WIC to low income mothers who qualify. WIC Vouchers can only be used to purchase specific healthy and nutritious food and beverage items, such as infant formula, whole milk, whole grain bread and cereals, juices, fresh produce and other similar items. Learn more about California WIC here.

Every state in the U.S., including Nevada and Arizona where the other Fresh & Easy stores are located, has a program similar to California WIC. Funding for WIC Vouchers is provided to the states primarily by the U.S. Federal Government.

South Los Angeles has a high percentage of WIC Voucher users, as noted in numerous past stories on the topic in Fresh & Easy Buzz.

In fact, employees at the Central and Adams neighborhood Fresh & Easy, which opened in February of this year, for the last five months have regularly had to explain to the numerous customers with WIC Vouchers, that the store - and Tesco's Fresh & Easy Neighborhood Market - doesn't except WIC. Beginning on July 27 the store workers at the South Los Angeles Fresh & Easy market will no longer have to do so. [See - February 23, 2010: Food Deserts & WIC Vouchers: Half A Loaf For the New Fresh & Easy Store Opening Tomorrow in South Los Angeles and February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

[Editor's Note: Nearly three years ago, Fresh & Easy Buzz first pointed out and reported on the fact that Tesco's Fresh & Easy Neighborhood Market, which opened its first stores in November 2007, didn't accept WIC Vouchers.

Additionally, in analysis and commentary pieces beginning in 2008 - and right up until the grocer decided to accept the vouchers at its first store, which will be the Central and Adams unit in South Los Angeles, on July 29 - we've also pointed out in detail how, from both business (added sales) and ethical grocer perspectives, Fresh & Easy was missing the boat by not accepting WIC in its stores. [Suggested reading: September 7, 2008: Analysis & Commentary: Should Tesco's Fresh & Easy Put An Asterisk Next to its Motto? Yes; Unless it Corrects Four Operational Omissions and December 29, 2008: Tesco's Fresh & Easy, 'Food Deserts' and WIC Vouchers; A 'Year-End' Analysis & Commentary]

Below is a selection of some of those past, and related, stories from Fresh & Easy Buzz:

July 7, 2010: Tesco's Fresh & Easy Neighborhood Market to Start Accepting WIC Vouchers at Central & Adams Store in South Los Angeles This Month

September 7, 2008: Analysis & Commentary: Should Tesco's Fresh & Easy Put An Asterisk Next to its Motto? Yes; Unless it Corrects Four Operational Omissions.

December 29, 2008: Tesco's Fresh & Easy, 'Food Deserts' and WIC Vouchers; A 'Year-End' Analysis & Commentary

February 10, 2008: Tesco's Fresh & Easy Opens Latest New Store in 'Food Desert' City of Compton, California

July 2008: Tesco's to Open A Fresh & Easy Grocery Market in Low Income, Underserved South Central Los Angeles Neighborhood

March 7, 2009: Analysis & Commentary: The Seven Retail Operations Changes Tesco's Fresh & Easy Neighborhood Market Needs to Make to Help it Get On the Success Track

July 11, 2008: 'Food Desert' Neighborhoods and Southern California: More on the Fresh & Easy Store Planned For South Central Los Angeles

July 15, 2008: Fresh Food to Bloom in An Inner-City Food Desert: Tesco's Fresh & Easy Breaks Ground For New Store in Underserved South Los Angeles Neighborhood

February 23, 2010: Food Deserts & WIC Vouchers: Half A Loaf For the New Fresh & Easy Store Opening Tomorrow in South Los Angeles

February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

April 22, 2010: Breaking Buzz: Tesco's Fresh & Easy to Accept WIC Vouchers at its East Adams Store in South Los Angeles

May 14, 2010: Fresh & Easy Neighborhood Market Not Yet Accepting WIC Vouchers at South L.A. Store; No Start Date Set

July 6, 2008: Former NBA Great Earvin 'Magic' Johnson is Working His Business Magic in Urban, Inner City Neighborhoods; We Offer An Idea For Tesco's Fresh & Easy

May 12, 2008: Food Deserts: Coalition to Create 'Blue Ribbon' Commission, Draft Report to Encourage Grocers to Open Stores in Underserved Los Angeles Neighborhoods

February 13, 2008: Leading Democratic Candidate for President Barack Obama Joins Group in Asking Tesco's Fresh & Easy to Put More Stores in Underserved Neighborhoods

June 3, 2008: Fresh & Easy Buzz Redux: Barack Obama to Tesco's Fresh & Easy in Our February 13 Piece: 'Build More Stores in Underserved Neighborhoods'

September 23, 2008: Food Retailing, Society & Economics: 'Food Deserts' and Public Health

March 20, 2009: Federal Government Spending Bill Increases WIC Voucher Program Dollars by $1.2 Billion; 21 Percent Increase

May 28, 2008: Las Vegas Market Report: A 'Food Desert' Neighborhood to Get A New Grocery Store; But it's Not A Fresh & Easy Neighborhood Market

April 27, 2008: New Study Points to Increasing Urban 'Food Deserts' In North America: Locating Stores in 'Food Deserts' A Part of Fresh & Easy's Strategy

March 7, 2008: Former NBA All-Star and Sacramento Native Kevin Johnson is the Driving Force Behind a Fresh & Easy Market in Sacramento's Oak Park Neighborhood

July 29, 2008: Tesco's Fresh & Easy and San Francisco's Tenderloin Redux: Upcoming Developments Offer First Mover Opportunity For Fresh & Easy or Competitors

You can read additional stories on the topic from the archives here

Wednesday, October 8, 2008

Putting the 'Neighborhood' in Neighborhood Market: 'Localism' and Tesco's Proposed Fresh & Easy Neighborhood Market in Sacramento's Oak Park


Fresh & Easy Buzz has received a number of notes today via email about our piece yesterday about the Oak Park Neighborhood Association's appeal of the design of the proposed Fresh & Easy grocery store to be located in Sacramento's Oak Park neighborhood.

[Click on the headline link to read the piece published in the Blog yesterday: "Sacramento's Oak Park Neighborhood Association Files Appeal On Design of Proposed Neighborhood Fresh & Easy Store; Hearing Set For Oct.15."]

The basic thrust of the contents of those notes is this question: Has Tesco's Fresh & Easy Neighborhood Market built and opened any stores to date in Southern California, Nevada and Arizona that are intentionally "Localized" in terms of their design to a specific community or neighborhood?

Here is what we know based on our observations, research and coverage of Tesco's Fresh & Easy Neighborhood Market:

Tesco basically has two store design formats for Fresh & Easy.

The first design format is the one for the Fresh & Easy stores it puts in vacant retail box-style buildings that formerly housed drug stores, supermarkets, big box stores and other retail formats. Fresh & Easy guts these buildings and then remodels them into a Fresh & Easy store.

At this link is a photograph of what the typical Fresh & Easy store that's located in a formerly vacant and then remodeled standard box retail store looks like. The stores can differ in exterior look in terms of their profile/ scale and facade depending on if they are in a former drug store, supermarket or big box store. But they have the same basic exterior design look.

The particular store in Manhattan Beach, California pictured in the link above went into a portion of a vacant Office Depot big box store. The store's profile/scale is higher (vertically) than those Fresh & Easy stores located in former supermarkets and drug stores. But the design look is essentially the same.

The interiors of the Fresh & Easy stores in remodeled retail standard box stores are essentially the same regardless of which market region, city or neighborhood the respective Fresh & Easy store is located at or in.

Fresh & Easy is in the process of adding interior design enhancements to the existing Fresh & Easy stores located in remodeled retail buildings. Therefore, although it has converted most of the existing stores to this new interior package, there still might be a couple not yet finished. Therefore they would look a bit different inside than the ones already converted since those stores would still lack the interior design enhancements. However, once finished all of the stores in this class will look essentially the same inside.

The exteriors of the stores in the remodeled standard box retail buildings also all look pretty much the same, as we mentioned above.

In some cases different types of graphics such as signage are used on the exteriors, along with a couple other differences in a few instances. But in the main the typical Fresh & Easy store located in a remodeled retail standard box building looks the same on the exterior, be it in Southern California, Metropolitan Las Vegas, Nevada or in the Phoenix, Arizona Metropolitan region.

At this link is a photograph of the exterior of a Fresh & Easy store in Anaheim, California that uses a slight signage addition (the metal backing on the sign) and a color change (the four-tone paint job on the exterior) which makes its exterior look a bit different than most of the other existing Fresh & Easy stores in remodeled standard box retail buildings do.

There also are a few Fresh & Easy stores in remodeled formerly vacant retail buildings that have a slightly different look on the outside then the Fresh & Easy store norm in this class because those existing buildings had for example brick on part of the exterior, such as a Fresh & Easy store in Las Vegas we have seen has, or has an archway or two in the front, such as another Fresh & Easy store (the Las Vegas Sun City store) located in a former vacant retail building we are aware of has. But those are a handful of exceptions, and the design isn't purposeful or local. It just happens to be what the existing building looked like in the main.

One significant exception to the standard design norm we are aware of is the Hollywood, California Fresh & Easy store. This store, which was put into an existing building, looks much different than all of the other Fresh & Easy stores located in existing buildings. This is primarily because the space the store went into is different than the former drug stores, supermarkets and other vacant standard retail buildings the majority of the Fresh & Easy stores (those not built from the ground up) are in.

The Hollywood Fresh & Easy store is in an urban center along Hollywood Blvd. The space it went into is of a design unlike those other typical retail boxes. Therefore the store is different from a design perspective because the existing space it went into is different. In other words, the Hollywood Fresh & Easy wasn't custom built to look different. Rather it followed the existing design of the space it went in.

Click here for a photograph of the exterior of the Hollywood, California Fresh & Easy store.

The second design format Tesco has for its Fresh & Easy stores is its built from the ground up new store prototype. Tesco uses this design for all of the new stores it is building from the ground up on empty parcels.

At this link is a photograph of a built from the ground up Fresh & Easy store. All of the new construction Fresh & Easy stores to date use this design or blueprint.

Some of these new store format stores might and can have certain cosmetic additions on the exterior. However, they are limited to graphics differences or slight additions as well.

Based on what we know, Tesco has thus far proposed to customize and localize somewhat one store. That store is a proposed unit in Fresno, California that would go into a popular former restaurant in the city. We reported on this development in Fresh & Easy Buzz on July 23, 2008.

Below is the July 23 piece from Fresh & Easy Buzz:

Wednesday, July 23, 2008

Fresno, California Fresh & Easy Grocery Store to Be First in Chain to Include Local, Community and Neighborhood Design Elements and Features

The Fresno, California City Council last night approved plans for an approximately 15,000 square foot Tesco Fresh & Easy Neighborhood Market at 2820 Tulare Street in the Central Valley city in California.

The 2820 Tulare Street location is the site of Fresno's historic old Hofbrau restaurant, pictured at top, which once was a city landmark famous for its generous portions of roasted beef, turkey, ham, pastrami and other meats and side dishes, along with its numerous varieties of cold draft beers, before it was closed down.

Fresh & Easy Buzz has learned the Tesco Fresh & Easy Neighborhood Market at the old Hofbrau location in Fresno will be the first store in which the grocery chain plans to incorporate local, community and neighborhood elements into the design theme of, which is something we've been suggesting since January Tesco do with its Fresh & Easy stores.

Plans for the Fresh & Easy grocery market going into the old Hafbrau include the store having a clock tower as part of the design, a masonry facade and murals that reflect the historic and cultural nature of Fresno and the 2820 Tulare Street neighborhood.

Including local (community and neighborhood) design features, including using murals with a local flair, is something Fresh & Easy Buzz has suggested in numerous blog pieces Tesco do with its Fresh & Easy stores in order to localize them, better fit into the communities and neighborhoods where it has its stores, and create a better "sense of place" to enhance the shopping experience in the stores for customers.

A member of the Fresno planning department told Fresh & Easy Buzz Tesco wants the store to fit into the historic elements of the neighborhood, as well as play up on the old Hafbrau's historic home there.

We've argued for a number of months that it's important--and will lead to greater success for the grocery chain--for Tesco to localize some of the design elements of its stores so as to respect and reflect the history and culture of the communities and neighborhoods it locates its small-format, combination grocery and fresh foods markets in because doing so will make the retailer not only a more accepted member of the neighborhood, but will pay dividends in the form of increased sales and customer loyalty in return.

As we were the first publication to report on March 17 (with a detailed follow up piece in May), Tesco plans to open at least an initial five Fresh & Easy grocery stores in the Fresno Metropolitan region, and likely will open additional stores in the region down the road. The first Fresno market region stores should start opening in early 2009.

We haven't heard anything from our Fresno sources, both within the city government and in the commercial real estate and business community in the city, about any of the other four planned Fresno region Fresh & Easy stores having localized design enhancements like plans call for the 2820 Tulare Street store going into the old Hofbrau to have. We are continuing to investigate that aspect however.

Meanwhile, based on the overview we received from a source who was at last night's Fresno City Council meeting, it appears the plans for the old Hofbrau building Fresh & Easy grocery store are singularly unique compared to the 63 small-format grocery stores the grocery chain has opened thus far in that the retailer is taking some local community and neighborhood elements and aspects into consideration in the design of the store, rather than it being a cookie cutter-designed grocery market like the current stores, the majority of which have gone into remodeled existing buildings, are.

Like we've been suggesting since December, 2007--localization of some elements of a grocery store's design, along with some aspects of its product mix, is key in today's food retailing and local consumer-conscious society. Or, as the late, longtime former Speaker of the U.S. House of Representatives Thomas "Tip" O'Neill used to say when asked to explain his fabulous success in politics..."Everything is local."

[Note: Here is a link to the original story from the Blog. At this link are links to a number of past Fresh & Easy Buzz about the "Localization" of store design and retail product selection. Those links are located at the bottom of the story at the link.]

[Reader Note: If any Fresh & Easy Buzz readers are aware of any existing Fresh & Easy stores that have customized, local design elements which were intentionally included in the store's design by Tesco's Fresh & Easy Neighborhood Market in order to fit into the style, history and culture of a given neighborhood, please let us know at: freshneasybuzz@yahoo.com. Please tell us the specific store and where it's located. Thank you. You also may offer any comments in that regard or in any regard on the topic using the "comments" link below.]

The proposed Oak Park, Sacramento Fresh & Easy

The Fresh & Easy grocery store slated to be built (and opened in 2009) in Sacramento's Oak Park neighborhood is a built from scratch store. Therefore, what the members of the Oak Park Neighborhood Association refer to in this piece as Fresh & Easy's "original design" is the built from the ground up format described above and pictured (the San Diego store) at the link above.

Theoretically and practically, if it wants to Tesco's Fresh & Easy can make any exterior additions and modifications to one of these new built from scratch stores that it desires. They can be painted different colors or multiple colors, different signs and graphics can be used on the exterior, bike racks can be added outside, as can umbrella tables with chairs and other additions. These modifications and additions can be added at very little cost in the larger scheme of things.

Additionally, Tesco can change how such stores face the street or how they are situated on the parcel without much added expense and very little effort, since the stores are built from the ground up.

Further, certain physical design modifications can even be made to the store exteriors at very little added cost.

Such neighborhood customization and "Localization" is done all the time by retailers ranging from Wal-Mart, Inc. and Safeway Stores, Inc. to Whole Foods Market. These are three very different chains. One is a traditional supermarket chain (Safeway), the other a natural foods retailer (Whole Foods), and the other the largest discount food and general merchandise products retailer in the world.

For example, if you look at Whole Foods' four stores in the city of San Francisco each one looks distinct from the other. Each has certain exterior (and interior) design elements intentionally designed-in so the store fits into its respective neighborhoods look, character, history and culture. They may not be what all neighborhood residents desire, which seldom is the case. But the point is the design elements are included intentionally to "Localize" the store to its neighborhood.

Whole Foods did this most specifically in the 55,000 square foot Oakland, California store it opened in September, 2007 near the city's downtown. That store, which is located in an old car dealership building Whole Foods' gutted, is designed like a European Food Hall.

Whole Foods did this on its own. There was no demand from either the city of Oakland or community groups to do so.

The reason Whole Foods designed the store this way is because the very popular historic Oakland Housewives Market, which closed down years ago, used to be nearby the new Whole Foods food market hall-style store.

The retailer wanted to pay honor to that historic market by making its store "Localized." At the same time the retailer knew doing so made good business sense because residents of a city love stores (and shop in them) that take local elements into consideration. The food hall-style Whole Foods Market store has received praise from Oakland residents, the local press and city officials. And it's doing very well.

Safeway Stores does this "Localization" throughout the U.S. with its Lifestyle supermarkets as well, both for new stores built from scratch and store remodels.

The supermarket chain currently has a proposal to remodel and expand a Safeway store in Washington D.C.'s Georgetown neighborhood for example that's specifically designed to fit into that historic neighborhood in the nation's capital. The neighborhood residents who've viewed the plans are even referring to it as the "Social Safeway," according to the Washington Post, because of how the design, which includes a patio and other features, for the remodeled store fits into the Georgetown neighborhood much better than the existing store does.

Safeway also has proposals for two San Francisco Bay Area store remodels -- one in Berkeley and the other in Oakland -- which include specific local elements suggested by community and neighborhood groups and associations. In fact the discussion involving additional design changes with a focus on neighborhood local elements is ongoing between Safeway and these groups in both cities.

Even Wal-Mart, which receives its share of attention for perhaps not being community minded enough, has in recent years put a major focuses on "Localizing" a number of its huge 160,000 -to over 200,000 square foot Supercenters.

For example, Wal-Mart opened a new Supercenter in Clinton, Tennessee On May 21 of this year that has specific local design elements incorporated into the entire store.

Additionally, Wal-Mart opened a "Localized" Supercenter in July, 2008 in Austin, Texas that included building and paying for the following local amenities: A bike path; a new road behind the store; a newneighborhood bus stop; and three retention ponds. The retailer also paid for and installed two traffic lights to improve neighborhood traffic management.

In 2007 Wal-Mart also built and opened a localized Supercenter in Highland Village, Texas, which is a city with a strong bicycling culture.

Wal-Mart bought additional land around the Supercenter where it built a system of bike paths for neighborhood and city residents. The bike paths connect to the shopping center.

Next to the Supercenter Wal-Mart built a gazebo for neighborhood bike riders. The gazebo features bike racks, drinking water fountains, benches to rest on and compressed air hoses cyclists can use for free to fill their bike tires. Wal-Mart also put a bicycle sales and repair shop inside the Supercenter, demonstrating how going local can also be smart merchandising.

Using local design elements and focusing on additional forms of community and neighborhood "Localization" actually is becoming more the norm rather than the exception for Wal-Mart not only with its Supercenters but with all of its various format stores. This includes paying for, creating and building local neighborhood improvements like it did in the stores mentioned above and has and is doing with numerous others. Wal-Mart is far from the perfect neighbor. But there's no question it has and is becoming a much better "local" retailer.

Epilogue

We end by mentioning what we think is an ironic twist.

Tesco chose the name "Fresh & Easy Neighborhood Market" for its small-format grocery and fresh foods stores specifically because it wants the stores to be the primary neighborhood grocery shopping choice for residents who live in the neighborhoods where the stores are and will be located. In other words Fresh & Easy is your neighborhood food store.

In the specific case of Sacramento's Oak Park neighborhood there are significant numbers (the members of the neighborhood association and others) of neighborhood residents who care so much about their neighborhood they want to have an impact on how what will be the neighborhood's only supermarket when it opens looks and is situated at its location, along with having an input on a few other design and related elements.

It seems to us Tesco's Fresh & Easy is missing out on a huge opportunity which presentins itself in Oak Park. That opportunity is to work closely with the Oak Park Neighborhood Association in the design of the neighborhood Fresh & Easy store. Bring them into the design and building process. Adopt as many of their ideas as they can -- that make sense and don't cost astronomical sums of money. After all it is their neighborhood

Follow that old saying: "If you aren't part of the solution, you're part of the problem." If one or more of the group's ideas for the store's design and siting don't make practical or economic sense, tell them so. Argue a bit. Debate. Explain why. They know the retailer has the last say if a final design is approved by the city.

But bringing them into the process will most likely create a better Fresh & Easy store for the neighborhood. It also will go a long way towards making the Oak Park Fresh & Easy Neighborhood Market the neighborhood's market once it opens. After all, unless we missed something really big, isn't that Tesco Fresh & Easy Neighborhood Market's mission statement?

Wednesday, July 14, 2010

Fresh & Easy Neighborhood Market Confirms Our June 25 Report it Will Open Nine New Stores in September 2010


New Store Openings

On June 25, 2010 we reported in this story - A Four Month Pause: No New Fresh & Easy Neighborhood Market Stores Set to Open Until September 2010 - that Tesco's Fresh & Easy Neighborhood Market would open at least nine, and potentially as many as 10, new stores in September 2010. We also reported the grocer wouldn't open any new stores in either July or August, which it won't.

Below are the key paragraphs from our June 25, 2010 report:

Tesco's Fresh & Easy Neighborhood Market currently has no plans to open any new stores in either July or August, Fresh & Easy Buzz has learned. Our source information is strong enough on this that if Fresh & Easy were to open a store, say in August, it will be because the grocer decided to do so after today.

The next batch of new Fresh & Easy stores will likely open in September 2010, according to our information. Look for as many as 9-10 new store openings in September.

Today Fresh & Easy Neighborhood Market issued a press release in which it announced it will open nine new stores in September. No new Fresh & Easy stores will open this month or in August.

The dates of the nine new store openings and the store locations are:

September 8th

>Hubbard St. & Gladstone Ave. Sylmar, Southern California
>Rosemead Blvd. & Valley Blvd. Rosemead, Southern California
>Rose Ave. & Gonzales Rd. Oxnard, Southern California Coast
>Cherry Ave. & 25th St. Signal Hill, Southern California

September 15th

>Cedar Ave. & Shields Ave. Fresno, California (Central Valley)
>Herndon Ave. & Fowler Ave. Clovis, California (Central Valley)

September 22nd

>32nd St. & University Ave. San Diego, California
>River Rd. & College Blvd. Oceanside, California
>College Blvd. & Oceanside Blvd. Oceanside, California

There are currently 159 Fresh & Easy fresh food and grocery stores located in California (Southern and the Central Valley), southern Nevada and Metropolitan Phoenix, Arizona.

Ninety eight of the current 159 Fresh & Easy markets are located in Southern California and the Bakersfield and Fresno Metro regions in California's Central Valley; 34 units in Metropolitan Phoenix, Arizona; and 27 stores in southern Nevada.

After the nine new stores open in September, the total Fresh & Easy Neighborhood Market store-count will be 168. Since all nine new stores are in California, it will raise the total store-count in the Golden State to 107, which will mean a significantly high percentage of Fresh & Easy sales will depend on how the stores perform in California, particularly in Southern California where the majority of the 107 units will be located.

We said in the blog that Fresh & Easy would continue to put its new store emphasis in Southern California - and it is. In fact, the grocer hasn't opened a new store in southern Nevada (Metro Las Vegas) in over a year. And its new store openings in Metropolitan Phoenix, Arizona has been nearly as sparse.

You will no doubt see numerous publications run stories today and this week about the opening of the nine new stores, based on the Fresh & Easy Neighborhood Market press release the grocer issued today. But we're the only publication that actually reported it - and we did so three weeks ago.

Linkage - Related Stories:

June 25, 2010: A Four Month Pause: No New Fresh & Easy Neighborhood Market Stores Set to Open Until September 2010

June 1, 2010: No New Fresh & Easy Neighborhood Market Stores Likely This Month

May 1, 2010: No New Fresh & Easy Neighborhood Market Stores Set to Open This Month

March 30, 2010: Tesco Set to Open 11 New Fresh & Easy Neighborhood Market Stores in April

March 29, 2010: Tesco's Fresh & Easy Set to Hit 150-Plus Store-Count Mark on April 7

March 16, 2010: A New Fresh & Easy Store Opens in Las Vegas Tomorrow on St. Patrick's Day; Will Tesco CEO Sir Terry Leahy's Proud Irish Eyes Be Smiling?

March 7, 2010: Three New Fresh & Easy Stores Opening This Month; First Opening March 10 in Palm Springs, California

January 27, 2010: February New Store Opening 'Big Bang' For Tesco's Fresh & Easy; Nine New Stores So Far

February 24, 2010: Fresh & Easy Store Opens its Doors in South Los Angeles

April 19, 2010: Tesco Debating Whether to Launch Fresh & Easy Into Northern California This Fiscal Year... or Wait

April 13, 2009: Despite Postponing its Northern California Launch Again Earlier This Year Tesco's Fresh & Easy Planning Third San Francisco Store; First Stockton Unit

January 14, 2010: UFCW Union Launches Informal Boycott of Fresno CA Fresh & Easy Stores Today; One Day After the Stores Open

April 20, 2010: Strong Group Revenue & Profit For Tesco... But $253 Million Loss at Fresh & Easy

June 23, 2010: Tesco Fresh & Easy Neighborhood Market CEO Tim Mason Gets Big Stock Award Featuring a Singular Twist

June 4, 2010: Every Little (Bit) Helps: Tesco Fresh & Easy Neighborhood Market CEO Mason Paid $6.188 Million For 2009

June 21: The Missing Link in Tesco's Purchase of Fresh & Easy Neighborhood Market Meat Supplier '2 Sisters Food Group'

Monday, April 13, 2009

Despite Postponing its Northern California Launch Again Earlier This Year Tesco's Fresh & Easy Planning Third San Francisco Store; First Stockton Unit


Upcoming New Markets Special Report: Northern California

Despite postponing its Northern California launch once again earlier this year, and having not yet opened any of the numerous Fresh & Easy Neighborhood Market store sites it's paying monthly lease payments on in Northern California, Tesco is planning a third store in San Francisco, California, Fresh & Easy Buzz has learned.

Tesco's Fresh & Easy has also signed a lease for what will be its first small-format grocery and fresh foods market in the Northern San Joaquin Valley city of Stockton, in Northern California. Stockton is located about 75 miles from San Francisco and about 30 miles from Modesto, where we've previously reported the grocery chain now has three Fresh & Easy stores planned.

San Francisco

The planned third San Francisco Fresh & Easy market will be located at 32nd and Clement Street in the City's Richmond District.

The two other planned Fresh & Easy store locations in San Francisco are at 5800 Third Street and Carrol Avenue in the low-income Bayview-Hunters Point Neighborhood, and at Silver Avenue and Goettingen Street, which is a mixed-use residential and commercial neighborhood in the city off of the 101 freeway.

The 5800 Third Street Fresh & Easy store is a new, built from the ground up store which will be the ground floor retail anchor to what is a multi-unit residential condominium building currently being constructed at the location.

The Silver Avenue Fresh & Easy market is planned to go into what is a now vacant building that previously housed a Cala Foods supermarket. Like many of its current 118 stores in California (Southern and Bakersfield), southern Nevada and Metro Phoeniz, Arizona, the Silver Avenue vacant, former supermarket building will be gutted and remodeled by Tesco and turned ino one of its small-format combination grocery and fresh foods markets.

Cala is (or more precisely was) owned by Kroger Co. Kroger Co., through its Ralphs supermarkets division based in Southern California, exited the Northern California market a few years ago, selling off or closing its about 50 Ralphs' banner supermarkets and about 25 Cala and Bell Market banner stores in the region.

All of the Cala and Bell banner stores were in the Bay Area, most in San Francisco or nearby cities. The Ralphs' stores were in the Bay Area and parts of the Central Valley and Sacramento region.

Kroger's Southern California-based Ralphs still operates a couple Cala-Bell stores in the Bay Area, which it is in the process of either selling or closing.

It also operates a couple of its FoodsCo banner discount warehouse stores in the region, including one in San Francisco's Bayview-Hunters Point neighborhood, not far from where Tesco is putting its Third Street Fresh & Easy market in the condominium development. Kroger-Ralphs has no plans to close the FoodsCo warehouse format stores in the region.

San Francisco's Richmond District is a part of the city, along with the next door Sunset District, that collectively also are referred to as "The Avenues," because its numbered streets -- all avenues -- start in the low numbers and run all the way to the high-forties as the streets get closer to the ocean. The Richmond and Sunset neighborhoods end at San Francisco's Ocean Beach, which is the end of land in the city's western portion.

The Richmond and Sunset neighborhoods, both the flatest residential parts of the city, run alongside San Francisco's famed Golden Gate Park -- the park is in the middle, dividing the two neigborhoods, which are two of the largest residential neighborhoods in the city in terms of the numbers of housing units and resident population. San Francisco's population is about 850,000.

There currently are a couple Safeway supermarkets in the Richmond district, along with a couple independent supermarkets. Safeway has a large store right near Ocean Beach that serves residents of both the Richmond and Sunset neighborhoods because of its central location. The store does are very high weekly sales volume.

Safeway Stores, Inc., which is the market share leader in the Bay Area and in the city of San Francisco, is based in Pleasanton, in the eastern part of the region, about 30 miles from San Francisco.

The 32nd and Clement proposed future Fresh & Easy store site once was home to a supermarket. However that store has since closed.

Tesco is only beginning the permitting and approval process for the 32nd and Clement store. And in San Francisco that can be a detailed and long process in terms of gaining approval.

For example, on Wednesday evening, April 15, Mark Warden, a vice president for the Costa Mesa-based Bergman Companies' design and building firm, will be making a presentation to the members of the Planning Association for the Richmond, which is an influencial group comprised of neighborhood residents, Fresh & Easy Buzz has learned. The group's mission is to guide planning and development in its neighborhood.

The presentation is from 7 -to- 9 p.m. at the Richmond Recreation Center, 251 18th Avenue, San Francisco. The Bergman Companies' Warden, representing Tesco's Fresh & Easy, will detail the grocer's plans for the site, including the store's design and other details, according to a member of the neighborhood group, and a notice on the planning association's Web site.

In San Francisco gaining the approval of neighborhood associations -- there's one in nearly every neighborhood in what is a city comprised of many distinct neigborhoods --is crucial to gaining approval from the city to build a commercial project like a retail store.

Most neighborhood groups in San Francisco tend to favor local retail stores over chains, although that doesn't mean chain stores don't get approval in the city. It often depends on the neighborhood. A couple neighborhoods though actually no longer allow chain retail stores of any kind.

San Francisco neighborhood associations like the Richmond District group look not only at a retailer's proposed design for a store when evaluating a proposal -- it's size, physical design, energy use -- they also look at the retail company proposing the store -- it's ethical reputation, environmental policies, whether its union or non-union, for example -- in evaluating if they will support the development or not.

Neighborhood associations in San Francisco don't legally make the decisions as to whether or not retailers get the green light on new retail store proposals in the city -- city government does. But the groups are so influential that seldom does a project a neighborhood association is against get build in San Francisco. On the plus side, it's very seldom if ever the city refuses to approve a retail project supported by a neighborhood association.

This is a key reason that Tesco's Fresh & Easy is having its representative make a presentation to the Richmond District neighborhood planning group.

Other new Northern California developments

Modesto

Fresh & Easy Buzz reported in this March 31, 2009 piece [Despite Having Postponed its Northern California Launch Indefinitely; Tesco's Fresh & Easy Planning Third Store in Modesto, California] that Tesco is building its newest and what it plans to be its third Fresh & Easy Neighborhood market store in the Northern California city of Modesto.

Modesto, which has a population of about 205,000 residents, is located about 90 miles from San Francisco in the Northern San JoaquinValley. Modesto is about a 45 minute drive from the nearest Bay Area city, Livermore, which is located in the Easy Bay region.

Fresh & Easy Buzz has now learned from a commercial real estate source that Tesco is looking closely at a handful of potential sites in Modesto for a possible future fourth Fresh & Easy store location in the city. None of the Fresh & Easy stores have yet to open in Modesto, or anywhere in Northern California.

Tesco hasn't confirmed the three Fresh & Easy planned store sites in Modesto that we've reported on. However we've documented each location through various means, including physical observation of the site, through commercial real estate sources, and via the California Alcoholic Beverage Control Department, in the case of the two stores -- Sylvan Square and Oakdale Road --that Tesco's Fresh & Easy Neighborhood Market has already applied for on sale beer and wine licenses for.

We agreed at the request of our source not to mention the potential sites Tesco's Fresh & Easy is looking at in Modesto for a possible fourth store at this point in time.

Stockton

Tesco's Fresh & Easy is also planning to build a store in Stockton, California, which like Modesto is located in the Northern San Joaquin Valley. Stockton is about 30 miles from Modesto, about 75 miles from San Francisco, and about a 30 -to- 40 minute drive from Livermore. This is the first future Fresh & Easy store site in Stockton we've been able to document.

The planned first Stockton Fresh & Easy market will be located in a redevelopment project in Stockton's Midtown area on what is the location of a former State of California mental hospital which was closed some years ago.

The 103 acre redevelopment site is now owned by the California State University System. Commercial real estate developer Grupe Co. is redeveloping the site, which is called University Place.

Tesco's Fresh & Easy Neighborhood Market has signed a 25-year lease for an about 14,000 square foot parcel in the redevelopment project where it will build a fresh & Easy store from the ground up, according to our sources. Grupe Co. verifies the lease.

Plans call for a mixed-use residential and commercial development, including condominiums and apartments, along with office buildings and retail stores, at the 103 acre site. The development also is the future home for a new satellite campus of the California State University System, hence its name -- University Place.

The closest state university campus is about 35 miles away, in Sacramento. California State University, Stanislaus, which is located about 45 miles from Stockton, in Turlock near Modesto in Stanislaus County, operates a small satellite campus in Stockton. Sacramento State University also offers some classes in Stockton. But the city wants its own comprehensive satellite campus.

Colliers International, which has an office in Stockton, is marketing the University Park redevlopment project in partnership with developer Grupe Co.

We said well over a year ago, when we first reported on Tesco Fresh & Easy's plans to open stores in Northern California, that the grocer would be locating stores in Stockton.

Our research shows that whenever Tesco's Fresh & Easy leases a site for an initial store in a city like Stockton, more units will follow. As a result, look for addialtion Fresh & Easy store locations to come in the city. In fact, we are aware that Tesco is currently shopping for sites for additional Stockton stores.

Fresh & Easy Neighborhood Market's store location strategy is one we've termed a "critical mass" store location strategy, meaning it likes to open and operate numerous stores, located not far from one another in a city, especially in larger cities like Stockton, which has a population of about 320,000. The Modesto example is a good one. It started with one planned store site and is now up to three planned locations.

In terms of the "critical mass" store location strategy, think about what Walgreens does with its drug stores and what Starbucks does with its cafes, opening numerous stores not far from each other in various neighborhoods in a city, hoping that the stores will become defacto neighborhood retail outlets by virtue of their mass availability throughout a given city's various neighborhoods. Critical retail mass.

This (the "critical mass" store location strategy) is what Tesco's Fresh & Easy has been and is doing in its current markets in California (Southern and Bakersfield), Metropolitan Las Vegas, Nevada and in the Phonix, Arizona Metro region. The strategic goal being to become the "neighborhood" grocery market of choice. There are 118 Fresh & Easy stores split between these market regions.

Stockton is where Tesco plans to build its Northern California distribution center. That distribution center is nowhere near completed however. In fact, Tesco has in our analysis intentionally postponed completing its Northern California distribution center as part of its decision to postpone its Fresh & Easy store launch into the region. Tesco has yet to confirm the distribution center will be located in the Stockton area.

As we first reported over a year ago, Tesco has and continues to look for potential Fresh & Easy store sites in cities throughout the Bay Area, the Sacramento-Vacaville region, and in Northern California's Northern San Joaquin Valley (and elsewhere in Northern California), near the cities of Stockton and Modesto. Those cities include Tracy, Manteca and Ripon, along with Turlock, Patterson and Merced, as well as others.

Tesco at present has eight Fresh & Easy locations planned for Fresno, which is about 45 miles south of Merced (which is 30 miles south of Modesto) in the central-near-southern Central Valley.

The grocery chain currently has three stores open and operating in Bakersfield, which is in the southern Central Valley, with plans to open six more in the coming months. Bakersfield is closer to Southern California geographically than it is to Fresno (Central California) and the Northern San Joaquin or Central Valley in Northern California. A good rule of thumb is that anything north of Merced, including Merced, is considered Northern California. Fresno -to- Bakersfield is generally considered Central California. Southern California begins once over the Grapevine, which seperates the southern valley from Los Angeles.

Fresh & Easy Northern California

Originally Tesco planned to have its first Northern California stores opened by mid-2008. Then it said the first stores in the region would open in late 2008. Early this year the grocery chain said it was postponing its Northern California launch indefinately, leaving open the date when it would open its first stores in the region.

Tesco has confirmed it plans to open and initial 37 stores in Northern California; 18 in the San Francisco Bay Area and 19 in the Sacrameno-Vacaville region of Northern California. It's now been over 15 months since it confirmed the 37 Northern California locations.

Fresh & Easy Buzz however has identified numerous additional Northern California planned locations in adition to the 37 announced and confirmed by Tesco's Fresh & Easy.

Below is a list of the 18 planned Fresh & Easy store locations in Northern California's San Francisco Bay Area that have been confirmed by Tesco. Tesco's Fresh & Easy officially announced the 18 locations in January, 2008. [Read our January 30, 2008 story here: [Fresh & Easy Goes On the Record: Announces 18 Northern California Stores in the Bay Area .] Fresh & Easy Buzz had already reported on a number of the planned Northern California locations prior to the public announcement/confirmation by Tesco

The 18 confirmed San Francisco Bay Area locations

>Antioch: Somersville & Buchanan roads; Lone Tree & Golf Course
>Concord: Clayton & Ygnacio Valley roads
>Danville: Diablo Road & Interstate 680]
>Fairfield: Beck Avenue & West Texas Street
>Hayward: Mission Boulevard & Rousseau Street; A Street & Hesperian Boulevard
>Mountain View: Middlefield Road & Rengstorff Avenue
>Napa: Jefferson Street & Imola Avenue
>Oakland: 73rd & Bancroft avenues
>Oakley: Laurel Road & Ohara Avenue
>San Francisco: Third Street & Carroll Avenue; Silver Avenue & Goettingen Street
>San Jose: Bird & Minnesota avenues; Almaden Road & Curtner Avenue
>Sunnyvale: Tasman Drive & Fair Oaks Avenue
>Vallejo: Oakwood Avenue & Springs Road
>Walnut Creek: Ygnacio Valley Road & San Carlos Drive.

Below is a list of the planned Northern California Fresh & Easy store locations identified and reported on by Fresh & Easy Buzz (with the exception of the Seaside and Oroville locations which were first reported on by local newspapers), but not confirmed to date by Tesco:

San Francisco Bay Area

>Vallejo (two sites). Two additional Fresh & Easy locations in Vallejo; in addition to the Oakwood Avenue unit in the city confirmed by Tesco as one of the 18 sites listed above. Read our report - May 21, 2008: Breaking News: Tesco Has Two New Fresh & Easy Stores in the Pipeline For San Francisco Bay Area; Brings Total to Date to 20 Units For the Region

>Pacifica: 5550 Coast Highway. Pacifica is located about 12 miles south of San Francisco. [Read our report - June 12, 2008: Upcoming New Markets News: Tesco to Locate Yet Another Fresh & Easy Store in San Francisco Bay Area; 21 Thus Far By Fresh & Easy Buzz's Reporting.]

[Related stories: October 7, 2008: Fresh & Easy Corporate Reps to Meet With Pedro Point Pacifica, CA Neighborhood Residents to Address Concerns Over Store to Open in 2009. October 9, 2008: Pacifica, CA Mayor Jim Vreeland Says He's Excited to Have Fresh & Easy Store Coming to Pedro Point; Says New Center Will Be One of the Best in Town. October 13, 2008: Pacifica Riptide & Fresh & Easy Buzz Join Together to Offer Pacifica, California Citizen Opinions On the Fresh & Easy Store Coming to the City.]

>Palo Alto: Edgewood Plaza Shopping Center. [Read our report - October 15, 2008: Tesco to Locate Fresh & Easy Store in Palo Alto, California; it's First in the City and SF Bay Area Store Number 22 By Our Reporting.] Note: We wrote this piece [ Upcoming New Markets Special Report: Upscale Palo Alto, California is Laying Out the Welcoming Mat to Grocers: Will Fresh & Easy Knock On the Door?] five months earlier, On June 12, 2008. Tesco's Fresh & Easy did come knocking at Palo Alto's door.

[Related story - March 19, 2009: Another Tesco Fresh & Easy Future Market City Bans the (Plastic) Bag: No Plastic Carrier Bags In Palo Alto, CA Supermarkets Starting September 18th.

Sacramento-Vacaville region

Click here to view a list and map of the 19 Tesco-confirmed Fresh & Easy stores in the Sacramento-Vacaville region in Northern California.

Sacramento-Vacaville region - not confirmed by Tesco

>Suisun City: Sunset Shopping Center. Sunset Avenue and State Highway 12. Suisun City is located between Sacramento and the San Francisco Bay Area, not far from the city of Vacaville. [Read our report - September 11, 2008: Tesco's Fresh & Easy Adds Another Store to its Sacramento-Vacaville Market Region Portfolio in Northern California.]

Elsewhere Northern California - not confirmed by Tesco

>Seaside: West Broadway Village Shopping Center. Seaside is located in Monterey County, in Northern California's south-central coast region. Note: The Herald (Monterey County) newspaper first broke the story on the Seaside location. We followed-up and verified the site. [Read our report - July 27, 2008: Fresh Buzz: Tesco's Fresh & Easy Neighborhood Market, Tesco PLC and Related Food Retailing News and Insight.]

>Modesto (3 stores thus far). (1) Sylvan Square Shopping Center; Coffee Road and Sylvan Avenue. (2) 1717 Oakdale Road. (3) Crows Landing Road near Whitmore Avenue.

[Read our reports: Sylvan Square - May 10, 2008: New Markets: Tesco's Fresh & Easy to Move Into Modesto, California Market; Open its First Store in the City Early Next Year. 1717 Oakdale Road - November 6, 2008: Upcoming New Markets News: Tesco Will Open A Second Fresh & Easy Store in Modesto, California. Crows landing Road - March 31, 2009: Despite Having Postponed its Northern California Launch Indefinitely; Tesco's Fresh & Easy Planning Third Store in Modesto, California.]

>Oroville, Butte County: Goldtown Plaza Shopping Center. The local newspaper, the Oroville Mercury Register, first reported on this location. Fresh & Easy Buzz verifield the lease and added some details in our report. [Our report - December 4, 2008: Despite Postponing its Northern California Launch, Fresh & Easy Continues to Grab New Locations in the Region, Including Going Rural.] Oroville is located in a rural region north of Sacramento.

Possible but not yet verified category
>Grass Valley, Nevada County. The local The Union newspaper reported in December, 2008 that Tesco's Fresh & Easy was negotiating with the owner of a closed Ford auto dealership in the city's Goldtwon Plaza to lease the dealership for a Fresh & Easy store. We verified the negotiations but haven't been able to verify the signing of any lease. [Our report - December 4, 2008: Grasss Valley - More on the Northern California Rural Strategy: An Existing Ford Auto Dealership in Grass Valley, CA Could Become A New Fresh & Easy Market.] As a result, we put this potential location in the "possible but not varified category" and don't count it yet as a "verified" Northern California Fresh & Easy planned store location.

Updated May 6, 2009:

Below are additional planned Northern California Fresh & Easy store locations we've uncovered and reported on since this piece was published. Tesco's Fresh & Easy has not yet confirmed these planned locations:

San Francisco Bay Area

>San Francisco, California. 32nd and Clement, Richmond District. This is the third planned Fresh & Easy store for San Francisco thus far, based on our reporting See our April 13, 2009 story here: Despite Postponing its Northern California Launch Again Earlier This Year Tesco's Fresh & Easy Planning Third San Francisco Store; First Stockton Unit.

>Hercules, California. New Town Center planned development. Hercules is in the Easy Bay Area, in Contra Costa County. See our April 17, 2009 story here: Another Planned New Location For Tesco's Fresh & Easy in San Francisco Bay Area: Market to Be Retail Anchor of New Development in Hercules, CA.

>Pleasanton, California. Rose Pavillion Shopping Center. Santa Rita Drive and Rosewood Drive. Pleasanton is in the East Bay Area. See our April 19, 2009 story here: Tesco's Fresh & Easy Signs Lease For New Store in Pleasanton, CA; We Reported 15 Months Ago the SF Bay Area City Was in its Strategic Sites.

Elsewhere Northern California - not confirmed by Tesco

>Stockton, California. University Place development, Stockton. This is the first planned Fresh & Easy store for Stockton. Stockton is in the Northern San Joaquin Valley; about 30 miles from Modesto and 35 miles from Sacramento. See our April 17, 2009 story here: Despite Postponing its Northern California Launch Again Earlier This Year Tesco's Fresh & Easy Planning Third San Francisco Store; First Stockton Unit.

Related stories from Fresh & Easy Buzz:

>November 12, 2008: Analysis: Hard Times at Fresh & Easy - Northern California Expansion to Be Postponed or Shelved Do to Economy; But its Only a Symptom Not the Cause

>November 20, 2008: Analysis & Commentary: Fresh & Easy Neighborhood Market and Tesco's Lowered Expectations

>May 15, 2008: Fresh But Never Easy: Tesco's Long But Rapid South-North March in the Nation-State of California

>April 13, 2008: April 13, 2008: San Francisco: Cool Bay Breezes, A City Full of History, Cable Cars--And A 'Fresh & Easy' State of Mind

>July 29, 2008: Tesco's Fresh & Easy and San Francisco's Tenderloin Redux: Upcoming Developments Offer First Mover Opportunity For Fresh & Easy or Competitors

>December 29, 2008: Tesco's Fresh & Easy, 'Food Deserts' and WIC Vouchers; A 'Year-End' Analysis & Commentary

>September 30, 2008: News & Analysis: Tesco Reports Half-Year Financials; Reports Loss For Fresh & Easy USA and Sales Per Square Foot Averages

>September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market

>November 16, 2008: California: The State of the State and its Economy; Governor to Propose Tax Increases and Massive Spending Cuts to Fix $11 Billion Budget Shortfall

>February 11, 2009: Tesco to Open Third Bakersfield, California Fresh & Easy Store On February 25.

>December 3, 2008: Tesco Opens its First Two California Fresh & Easy Stores Outside of Southern California in the Central Valley City of Bakersfield Today

>November 5, 2008: Upcoming New Markets News: Tesco's Fresh & Easy Confirms Bakersfield, CA Stores; Says First Two Will Open Next Month on December 3rd, 2008

>March 10, 2008: Bakersfield, California Region Next Up On the Fresh & Easy Neighborhood Market New Store Parade

>May 24, 2008: Upcoming New Markets Special Report: The Changing 'Face' of Retailing in Bakersfield, California

>March 26, 2008: Mid-Week Tesco Fresh & Easy Roundup

>May 14, 2008: Fresh & Easy Buzz Exclusive: Tesco's Fresh & Easy Neighborhood Market Plans to Open Five Stores In the Fresno, California Metropolitan Region

>March 8, 2008: Fresh & Easy Neighborhood Market Northern California DC Likely to Be At Arch Road Site In Stockton

>September 15, 2008: Wal-Mart Expanding its Discount Store-to-Supercenter Conversion Program As Part of its Strategy to Grab Even More Food and Grocery Sales Market Share

>December 29, 2008: Competitor News: Winco Foods to Expand in California and Nevada in 2009; Put Aggressive Focus on Central Valley, Northern California and Northern Nevada

>February 11, 2009: Tesco's Fresh & Easy Isn't the Only Food & Grocery Retailer With its Eyes on Bakersfield: Wal-Mart's Bakersfield Push and Central Valley, CA Strategy

>February 28, 2008: News & Analysis: Tesco's Fresh & Easy Confirms 19 Store Locations for the Sacramento-Vacaville Region in Northern California

>January 28, 2008: Fresh & Easy Applies For Liquor Licenses for Four Sacramento, California Stores

>Monday, November 17, 2008: Sacramento City Design Board Agrees With Oak Park Group on Design Changes For Proposed Fresh & Easy Store; Escrow Closed on $1.1 Million Parcel

>November 12, 2008: Analysis: Hard Times at Fresh & Easy - Northern California Expansion to Be Postponed or Shelved Do to Economy; But its Only a Symptom Not the Cause

>November 16, 2008: Tesco Fresh & Easy CEO Tim Mason Says He's 'Deliriously Happy' With the Chain's Progress Thus Far; We Prefer Andy Grove's 'Only the Paranoid Survive'

>Wednesday, October 8, 2008: Putting the 'Neighborhood' in Neighborhood Market: 'Localism' and Tesco's Proposed Fresh & Easy Neighborhood Market in Sacramento's Oak Park

>Tuesday, October 7, 2008: Sacramento's Oak Park Neighborhood Association Files Appeal On Design of Proposed Neighborhood Fresh & Easy Store; Hearing Set For Oct.15

>Wednesday, October 15, 2008: Hearing Tonight For Sacramento, CA Neighborhood Group's Appeal of Design of Fresh & Easy Store Proposed For Their Oak Park Neighborhood

>December 3, 2008: Swearing-In of New Sacramento, CA Mayor Kevin Johnson Delayed A Few Hours Over A $2.2 Million Tesco Fresh & Easy Agenda Item

>July 16, 2008: Fresh Feature: A Former NBA All-Star Who Wants to Become Mayor, A Trade Union, And A Future Tesco Fresh & Easy Grocery Store In Sacramento, California

>April 29, 2008: Tesco's Fresh & Easy an Issue in Sacramento, California Mayor's Race A Year Before its First Store in the Capital City Even Opens

>March 7, 2008: Former NBA All-Star and Sacramento Native Kevin Johnson is the Driving Force Behind a Fresh & Easy Market in Sacramento's Oak Park Neighborhood

>October 9, 2008: Tesco's Fresh & Easy Has Put 16 of its 93 Stores in Formerly Vacant Supermarket Buildings and Plans to Do More Coversions While the Deals Are Hot

>February 19, 2008: Tesco's Fresh & Easy Serving as an Economic Stimulus Package of Sorts for California's Troubled Commercial Retail Real Estate Industry

>January 30, 2009: Competitor News: Safeway Stores, Inc. Confirms Second Small-Format 'The Market' Unit to Be in San Jose, CA; Fresh & Easy Buzz Nailed it in June, 2008

>December 30, 2008: Competitor News: Smart & Final Appears Pleased With its Eight Hybrid 'Extra' Format Stores, More On the Way in 2009

>December 12, 2008: Competitor News: Safeway CEO Steve Burd Says Small-Format 'The Market' Is 'Good' So Far But Not 'Great;' But Must Be 'Great' in Order To Expand

>December 29, 2008: Competor News: Winco Foods to Expand in California and Nevada in 2009; Put Aggressive Focus on Central Valley, Northern California and Northern Nevada

>September 15, 2008: Wal-Mart Expanding its Discount Store-to-Supercenter Conversion Program As Part of its Strategy to Grab Even More Food and Grocery Sales Market Share

>May 18, 2008: Wal-Mart Looking For Sites in California For it's Small-Format 'Marketside' Grocery

>Tesco thus far has a couple Fresh & Easy stores planned for Northern Nevada, which is much closer geographically to Northern California (less than three hours from Sacramento), and is a much more similar market to Northern California than it is to southern Nevada, which is one of Tesco Fresh & Easy's existing market regions, along with Southern California, Bakersfield and Metro Phoenix, Arizona. Story link: Reno-Sparks, Nevada.

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