Tuesday, March 15, 2011

There's Nothing Pie-in-the-Sky About Trader Joe's 'Elegantly Simple' Pie Recipe Contest


Private Brand Showcase
Private Brands and Promotional Merchandising

Among the various ingredients that make Southern California-based Trader Joe's so successful are its unique use of humor and its "elegant simplicity," by which we mean that in all aspects of its operations, from the design and day-to-day operation of its stores to its private brand development, merchandising and marketing communications, the iconic grocery chain always keeps things simple, clear and understandable to the consumer, doing so with its own private brand of whimsy.

A perfect example of how Trader Joe's regularly combines these various elements into a seamless whole is a new recipe contest the grocery chain just launched which is as easy as, or as simple as, pie.

In fact, that's what the recipe contest focuses on - pie.

Specifically, Trader Joe's is challenging Americans to "Create a recipe for pie that is easy as pie." The contest is part of TJ's "2011 HiiP (Highly innovative ingredient Pairing) Recipe Showdown."

In terms of the pie recipe contest Trader Joe's keeps it simple rather than taking a pie-in-the-sky approach. Here's the "elegantly simple" criteria for the recipe contest:

EASY AS PIE HiiP RECIPE GUIDELINES

• An Easy As Pie HiiP Recipe uses up to 5 Trader Joe’s products. Nothing else. Binders (i.e., salt, pepper, butter, cooking oil, etc.) do not count as ingredients.
• And just to be fair to all of our chefs under the age of 21, the use of alcohol is not allowed in Easy As Pie HiiP Recipes.
• Easy As Pie HiiP Recipes must take 20 minutes or less for preparation; the actual cooking can take longer.

The instructions on how to enter the pie recipe contest are equally simple.

HOW TO ENTER

• In an e-mail, list ingredients and explain cooking steps as concisely as possible.
• Include your name and preferred method of contact (in case your Easy As Pie Recipe is selected).
• Send to hiiprecipes@traderjoes.com by April 1, 2011.

That's it - as easy as pie.

The winning criteria are also "elegantly simple," as you can see below under the "REWARDS" heading. Innovative, yummy and - "as easy as pie." That's it. And really, when it comes to pies is there really anything else that matters?

The recipe contest winners also will be rewarded by Trader Joe's in a simple but meaningful way, as the grocer spells out plain and clear in its "elegantly simple" one-page contest entry form here).

REWARDS, REWARDS, REWARDS!

• Pie Recipes will be evaluated first by the Trader Joe’s (R2 ) Recipe Review Panel. Pies will be judged on how highly innovative the ingredient pairings are (HiiPness); how "easy as pie" the recipe is; and, naturally, how yummy it is.
• 5 Easy As Pie HiiP Recipes will be selected for further judging by the Trader Joe’s community (to be announced in our May eNewsletter), who will vote on 3 winning Easy As Pie Pies.
• Aside from the honor of having your culinary art recognized on our website for millions of Trader Joe’s community members to enjoy, the creators of the 3 selected recipes will each receive a Trader Joe’s Gift Card in the amount of $25 dollars + one of our hip reusable bags + a super

There you have it, a pie recipe contest that's as easy, or as simple, as pie. Take some Trader Joe's private brand frozen pie crusts, add some fresh peaches (or apples perhaps) from TJ's, along with the grocer's own brand milk, sugar and butter (plus a few more things), and you have one version of a simple and easy yet potentially yummy peach or apple pie. It's not a very innovative one. But its simple and therefore makes for a good illustration.

And as you can see here, Trader Joe's is offering numerous suggestions about the potential universe of pie recipes that budding bakers entering the contest might want to create. For example, there are your basic dessert pies - apple, peach, berry and cream, for starters. But there's also custard, mince, chess, pizza, savory, meat, curry and even...pie-in-the-sky.

There is one ingredient that if used in a pie will send a potential winner to pie recipe purgatory. That ingredient, or class of ingredients: alcoholic beverages of any kind.

But before you think the booze prohibition is because Trader Joe's is exercising a moral prerogative, think again. Rather, the prohibition against the use of adult beverages in the pie recipes was instituted in order to create a level playing field for those budding pie-maker/contestants who happen to be under the legal drinking age, according to Trader Joe's.

Arguably the most important "elegantly simple" criteria for Trader Joe's in its "easy as pie" recipe contest is this one: "An Easy As Pie HiiP Recipe uses up to 5 Trader Joe’s products. Nothing else. Binders (i.e., salt, pepper, butter, cooking oil, etc.) do not count as ingredients."

After all, from a simple product sales standpoint Trader Joe's is going to get numerous consumers to participate in the recipe contest, particularly as word-of-mouth spreads the yummy news. As a result, the iconic grocer is going to be selling a whole lot of those up to five Trader Joe's ingredients used to make the pies, along with a considerable amount of those "binders" - the salt, pepper, butter, cooking oil, etc. that although aren't among the up to five main ingredients for the pies must be used to hold them together and give some added flavor.

Look at it from an average market basket sales perspective. The ingredients - apples, pie crust, cinnamon, nutmeg - and those binders - milk, sugar, brown sugar, butter, ect. - needed to make an apple pie to enter in the recipe contest would, if all the items were bought at a Trader Joe's store, easily add $10 or more onto a customer's average market basket purchase. In other words, if Jane Jones planned to spend $40 at her local TJ's but decides to enter the recipe contest and pick up what she needs to make her pie, the $40 purchase can easily turn into a $50-plus buy one. The bigger the average market basket purchase size the happier a grocer is. The contest encourages incremental sales. And it does so in a soft-sell and fun way.

But even more important, the simple and easy pie recipe contest hangs a lantern on Trader Joe's private brands, reinforces the grocer's humorous and whimsical style, operations, merchandising and marketing approach, continues to create buzz for the chain, which spends little or nothing on traditional advertising already, and further positions its private brand products as being equal to or even better than manufacturer national brands.

After all, many moms will be making pies and entering the recipes in the contest. And as we all know, mom would never make a pie without using the "best" brands and ingredients.

Readers

Click on the following links - , , , , , - for a selection of related stories. Click on the "older posts/newer posts" links at the bottom of the linked pages for additional pages/stories.

San Francisco, Antioch and Fairfield Stores Next Up in Northern California For Fresh & Easy Neighborhood Market

The Fresh & Easy store in the Pedro Point shopping center in Pacifica, California (pictured above), which opened on March 9, continued it's grand opening activities over the weekend. On Saturday the store featured a guitar player and a balloon artist, who made various creations out of balloons.

The store at 5550 Coast Highway in Pacifica also had a bit of excitement on Friday when it, along with other merchants along the coast in Pacifica, had to close for part of the day because of the tsunami warning triggered by the earthquake in Japan. The Fresh & Easy store was able to open later in the day after local authorities sounded the all clear.

Meanwhile, the less-than-week-old Pacifica Fresh & Easy is thus far receiving mixed reviews on the popular review site yelp.com. Some love it; others hate it. A few are not sure. Read the reviews here.

A number of the yelp reviewers express a dislike for aspects of Fresh & Easy that we've identified and pointed out since 2008 are problems for the chain, in our analysis. Those aspects include: its self-service-only checkout, non-acceptance of manufacturers cents off coupons, offering only free plastic grocery bags but not paper, mostly pre-packaged produce; and a couple others.

Breaking Buzz
Tesco's Fresh & Easy in Northern California - 2011

Fresh & Easy Neighborhood Market is preparing to open three additional stores, besides the three units it's already opened so far this year in San Jose, Danville and Pacifica and the eight stores it's set to open this month and in April, Fresh & Easy Buzz has learned.

The three stores at the top of the next store opening round for Fresh & Easy in Northern California are:

>San Francisco - 32nd & Clement
>Antioch - Lone Tree & Golf Course
>Fairfield - Beck Avenue & West Texas

The San Francisco store at 32nd Avenue & Clement Street is one of two units Fresh & Easy originally planned to open in the February-April time period. The other store is at 5800 Third Street in San Francisco's Bayview District. [See our story from yesterday - March 14, 2011: Opening of Fresh & Easy Neighborhood Market Store at 5800 Third Street in San Francisco Held Up Pending Approval of Liquor License. Also see - February 1, 2011: Tesco's Fresh & Easy Neighborhood Market Still Plans April-May 2011 Openings For First Two San Francisco Stores.]

Depending on the resolution of certain circumstances (see the story linked above) Fresh & Easy Neighborhood Market, which is owned by United Kingdom-based Tesco, would like to open the 32nd & Clement and 5800 Third Street stores in San Francisco at around the same time.

The Antioch location at Lone Tree & Golf Course is a site Tesco's Fresh & Easy has had since at least January 2008. It's a build-from-the-ground up store location in a shopping center where CVS Pharmacy is also building a new drug store next to the Fresh & Easy market. The new CVS is also set to open soon.

Antioch is in Contra Costa County (East Bay Area), where Tesco's Fresh & Easy is opening its first store at Clayton Road & Ygnacio Valley Road in Concord on Wednesday, March 16.

The following Wednesday, March 23, Fresh & Easy Neighborhood Market is opening its second store in Contra Costa County. That store is in Walnut Creek, at Ygnacio Valley Road & San Carlos Road. Walnut Creek is next door to Concord.

Farfield, where Tesco's Fresh & Easy will soon open its store at Beck Avenue & West Texas, a location it also acquired in early 2008, is in Solano County. It's about 30 minutes by car from Vacaville, where Fresh & Easy Neighborhood Market is opening a store at Elmira Road & Nut Tree Road, also on Wednesday.

When the Concord and Vacaville Fresh & Easy stores open on Wednesday, they will make five stores thus far in Northern California for the Tesco-owned fresh food and grocery chain, which is based in the Southern California city of El Segundo and currently has 167 stores in California, Nevada and Arizona.

Six additional Fresh & Easy stores are slated to open from March 23 -to- April 27. Those stores, their locations and opening dates are:

March 23rd, 2011
>Oakdale Rd. & Lancey Dr., Modesto, California
>Ygnacio Valley Rd. & San Carlos Rd., Walnut Creek, California

April 13th, 2011
>Rosewood Dr. & Santa Rita Rd., Pleasanton, California

April 27th, 2011
>Mission Blvd. & Rousseau St., Hayward, California
>Imola Ave. & Jefferson St., Napa, California
>Saratoga Ave. & Payne Ave., San Jose, California

Based on our current information from sources, and as we always say, new store opening dates are a fluid and dynamic thing at Tesco's Fresh & Easy, the 32nd & Clement unit in San Francisco could be opened as early as April, although May is the more likely opening month at this point in time.

The Antioch and Fairfield Fresh & Easy stores currently are slated for May or June openings, depending on a few variables.

Based on our reporting to date, Fresh & Easy Neighborhood Market currently has at least 60 store locations planned in Northern California, and continues to acquire new sites for future stores.

Tesco's Fresh & Easy has yet to announce the dates of any additional store openings in Northern California beyond the first 11 it's opening in March and April 2011.

However, in addition to the stores we are reporting on in this piece, Fresh & Easy plans to open additional units in Northern California this year. Stay tuned.

Reader Resources

Readers: Click on the following links - , , , , , , - for complete coverage of and analysis on Tesco's Fresh & Easy Neighborhood Market in Northern California. Use the "newer posts"& "older posts" links at the bottom of the linked pages for additional pages/stories.

Also, for a specific look at each of the three Fresh & Easy stores that have opened in Northern California so far in 2011, read the stories linked below:

March 2, 2011; Fresh & Easy Neighborhood Market Opens First Two Stores in Northern California Today March 1, 2011: Two Years On: Tesco Opens First Two Northern California Fresh & Easy Neighborhood Market Stores Tomorrow; January 17, 2011: First Look at the Willow Glen-San Jose Fresh & Easy Neighborhood Market Store Set to Open March 2, 2011; February 14, 2011: First Look: Fresh & Easy Neighborhood Market Store in Northern California's Danville Set to Open on March 2; December 27, 2010: First Look at the Pacifica, California Fresh & Easy Neighborhood Market Store, One of the First Opening in Northern California in Early 2011; March 9, 2011: Northern California Launch: Tesco's Fresh & Easy Neighborhood Market Opens Store in Pacifica Today.

Monday, March 14, 2011

Opening of Fresh & Easy Neighborhood Market Store at 5800 Third Street in San Francisco Held Up Pending Approval of Liquor License

As the sign on the window of the future Fresh & Easy store at 5800 Third Street in San Francisco pictured above says, as of today Tesco's Fresh & Easy Neighborhood Market hasn't received approval to sell alcoholic beverages at the store. The application is a premise-to-premise transfer (purchase of a liquor license by Fresh & Easy) from one party to another. Usually these types of applications get faster approval then those for a new license application do.

Tesco's Fresh & Easy in Northern California - 2011

Fresh & Easy Neighborhood Market's announcement about when it plans to open its store at 5800 Third Street (at Carrolm Avenue) in San Francisco is being held up as the Tesco-owned grocery chain waits for approval from the California Alcohol-Beverage Control (ABC) agency for its application to sell hard liquor at the store, which is located in the new "5800 Third Street" condominium development in the city's Bayview Neighborhood, Fresh & Easy Buzz has learned.

Additionally, since its liquor license for the store has not yet been approved, Tesco's Fresh & Easy is holding off on doing the finishing work, painting and installing refrigeration cases, shelving and checkout stands inside the about 12,000 square-foot store, until that approval comes from the ABC. (Pictured below is the inside of the 5800 Third Street store as of today.)

The exterior of the store (pictured here) has been completed for about three months.

We've reported extensively on the back-and-forth decision-making process at Tesco's Fresh & Easy regarding when it would open the 5800 Third Street store in San Francisco's Bayview District.

The location is a key one for the grocer. For example, it held a major press event at the site in early 2008 to announce its then plans to enter Northern California in 2009.

Additionally, as we've previously noted, in our analysis it has the potential to be one of Fresh & Easy's better performing stores. [See -February 1, 2011: Tesco's Fresh & Easy Neighborhood Market Still Plans April-May 2011 Openings For First Two San Francisco Stores, and December 14, 2010: Fresh & Easy Neighborhood Market to Open 5800 Third Street 'Flagship' Store in San Francisco Later in 2011 Than Originally Announced .]

Tesco's Fresh & Easy also owns the store building in the 5800 Third Street development. The grocer announced its plans to open a store in the development in January 2008.

5800 Third Street timeline

Fresh & Easy Neighborhood Market first announced in a press release on August 19 that it planned to launch into Northern California in early 2011, saying it would open its first eight stores in the region then. Included in the announcement was the store at 5800 Third Street in San Francisco.

The first eight stores listed in the August 19, 2011 press release were:

>San Francisco: Third Steet & Carroll Avenue
>San Jose: Bird Avenue & Minnesota Avenue
>Danville: Diablo Boulevard & Highway 680
>Pacifica: Cabrillo Highway & Linda Mar Boulevard
>Vacaville: Elmira Road & Nut Tree Road
>Modesto: Oakdale Road & Lancey Drive
>Walnut Creek: Ygnacio Valley Road & San Carlos Drive
>Concord: Clayton Road & Ygnacio Valley Road

[Read our story about the announcement - August 19, 2010: Tesco Will Open its First Eight Fresh & Easy Neighborhood Market Stores in Northern California in 'Early 2011.']

But on November 10, 2010 Fresh & Easy Neighborhood Market issued a second press release in which it said it would open 12 rather than eight stores in Northern California in early 2011. However, the store at 5800 Third Street in San Francisco was no longer on the list. [See - November 12, 2010: Postponed But Not Abandoned: Fresh & Easy Neighborhood Market Gearing Up For Northern California Launch.] The San Francisco store at 32nd & Clement was added to the list in its place though.

Still later on, Fresh & Easy amended its Northern California opening plans, announcing on January 12, 2011 it would open 11 stores in Northern California in early 2011. [See - January 12, 2011: First Northern California Fresh & Easy Neighborhood Market Stores Opening March 2; Nine More to Follow March-April. Also see - December 14, 2010: Fresh & Easy Neighborhood Market to Open 5800 Third Street 'Flagship' Store in San Francisco Later in 2011 Than Originally Announced.]

Not only was the 5800 Third Street store still off the list, but the unit at 32nd & Clement in San Francisco was also removed this time around. [See this story for additional background: February 1, 2011: Tesco's Fresh & Easy Neighborhood Market Still Plans April-May 2011 Openings For First Two San Francisco Stores.] Click here to see the locations of the 11 stores, three of which - Willow Glen/San Jose, Danville and Pacifica - have opened so far.

In its January 12, 2011 press release, Fresh & Easy Neighborhood Market said it would be announcing the opening dates for the two San Francisco stores at 5800 Third Street and 32nd & Clement in "the coming weeks."

It's now been about eight weeks since January 12 and no announcement has come yet from Tesco's Fresh & Easy about the San Francisco store opening dates.

The future Fresh & Easy store at 32nd & Clement is on track to be completed soon. The exterior is finished and the inside is progressing well.

But because it's waiting to get approval from the California ABC on its liquor license, work inside the 5800 Third Street store in San Francisco's Bayview neighborhood is on hold. As you can see in the photo below, the building's interior awaits finishing work, painting, the installation of equipment, shelving, checkout stands and other detailing. A full-crew can have the inside of the store ready to go in a couple weeks though, as installing the Fresh & Easy interior package is much less time-consuming than is the case with larger supermarkets.

The California ABC is currently accepting comments from residents of the neighborhood regarding Fresh & Easy Neighborhood Market's application to sell hard liquor as well as beer and wine at the 5800 Third Street store.

The Bayview is a low-income neighborhood and historically numerous residents and neighborhood groups, along with some city officials, have opposed allowing any new stores or existing stores not already selling hard liquor, and even in some cases beer and wine, to do so.

At present it appears Fresh & Easy will get approval to sell hard liquor at the store. The reason is because the area is a "food desert" and the residents of the neighborhood we've talked to say having the store open, even if it offers hard liquor for sale, trumps not having a store in the location, since the neighborhood is underserved by grocery stores that offer fresh foods and groceries for reasonable prices.

Some of the Fresh & Easy stores in California, Arizona and Nevada sell hard liquor along with beer and wine. But the majority of the grocer's 167 markets sell beer and wine only.

Based on our current reporting, we expect that the 5800 Third Street Fresh & Easy store will open in May, or June at the latest, unless there's some last minute problem with the approval of the liquor license application. And even if there is the store can always open offering beer and wine only, which requires just a permit and not a license in California.

Readers

Click on these links - , , , , , , - for complete coverage of and analysis on Tesco's Fresh & Easy Neighborhood Market in Northern California.

Friday, March 11, 2011

First Fresh & Easy Neighborhood Market Billboard Spotted in Northern California


Tesco's Fresh & Easy in Northern California - 2011

Tesco's Fresh & Easy Neighborhood Market has put up its first outdoor billboard in Northern California, where it's opened three stores so far this year, in San Jose's Willow Glen neighborhood and Danville (March 2), and in Pacifica (March 9). All three stores are in the San Francisco Bay Area. [See - March 2, 2011: Fresh & Easy Neighborhood Market Opens First Two Stores in Northern California Today; March 1, 2011: Two Years On: Tesco Opens First Two Northern California Fresh & Easy Neighborhood Market Stores Tomorrow; and March 9, 2011: Northern California Launch: Tesco's Fresh & Easy Neighborhood Market Opens Store in Pacifica Today.]

The billboard (pictured at top), which is located at Malone and Lincoln a little more than a mile away from the Fresh & Easy store in San Jose's Willow Glen Village shopping center, and went up on or shortly after March 2, features the tag-line: "As affordable as eating unhealthy."

The Willow Glenn-San Jose neighborhood billboard is of the same style Fresh & Easy uses in its other markets - Southern California, the Fresno and Bakersfield regions in California's Central Valley, metropolitan Las Vegas, Nevada and metro Phoenix, Arizona. All of the billboards have the same design and feature different "one-liners." For example, the billboard pictured below, which is in Southern California, offers one of the other tag-line versions.


The location of the billboard, which is the first one we've spotted so far in Northern California, is a gateway entrance to the Willow Glen neighborhood from the south. The intersection is well-traveled by automobiles, which means it's a highly-visible spot for the outdoor advertisement for the Fresh & Easy market a little over a mile away.

The "As affordable as eating unhealthy" tag-line is an interesting one in light of the fact the billboard looks down on a liquor store, Lincoln Liquors, as you can see in the photograph at top. That's not to suggest all of the adult beverages offered for sale in the liquor store aren't "healthy." Red wine and beer, for example, are universally considered to be "heart healthy" drinks, if consumed in moderation. The billboard's looking down on the liquor store does offer added meaning to the tag-line though, in a symbolic way.

Thursday, March 10, 2011

A Fresh & Easy Neighborhood Market Tasting of California Wines: Live Via Twitter

One of the 27 varieties of California-produced wines being tasted tonight at the Fresh & Easy Neighborhood Market event at the SmogShoppe is Barrel Ranch Cabernet. Barrel Ranch is one of the seven proprietary brands the grocer has launched. (See the story linked below for the others.) Here's how wine taster-eater-blogger-tweeter @Oakmonster, who took the photo above, scored the wine via a tweet on Twitter after tasting it a few minutes ago: "@fresh_and_easy barrel ranch cabernet. Chugability: easy to drink, fav of the evening. #fesmog." Fresh & Easy Buzz likes "Chugability" as an evaluative criteria. Perhaps it should be used in all wine tastings and competitions.

On Tuesday we reported that Fresh & Easy Neighborhood Market is this week introducing 27 new varieties of California wines under seven proprietary (or private) brands at its 167 fresh food and grocery stores in California, Nevada and Arizona. Read the story - March 8, 2011: Tesco's Fresh & Easy ♥'s California With 27 New Varieties of Proprietary Brand Wines From the Golden State.

On Wednesday, the PR department at Tesco's Fresh & Easy distributed a press release announcing the new California wines.

Tonight Fresh & Easy Neighborhood Market is holding a tasting of the 27 varieties of California wine at the SmogShoppe in Los Angeles/Culver City.

The SmogShoppe is a former automobile smog-check shop that's been turned into a 6,500 square-foot, solar powered, plant-filled indoor/outdoor event space. It even has a verticle garden. You can learn more about the space here.

Tesco's Fresh & Easy has invited a group of foodie and mom-oriented bloggers and Twitter-tweeters to the wine tasting this evening. The tasters are currently tweeting their impressions of the various California wines as they taste the 27 varieties one at a time.

You can view the taster-tweeters' wine note tweets in real time on Twitter here.

The tasters are being "dined" as well as "wined" by Tesco's Fresh & Easy, as evidenced by this tasty tweet from the @artmuse:

"@theartmuse: Beef & vegetable skewer, artichoke heart w goat cheese, shrimp ceviche, lobster ravioli #fesmog we approve. via TweetCaster."

The Lobster Ravioli (above) is one of the many foods the wine tasters are dining on right now. Photo live-tweeted by @dananner

And another taster, @OakMonster, appears to approve of the evening so far, tweeting: "@OakMonster @vianessa i approve of what is happening this evening." Word, girl. Word! #fesmog."

Numerous other tweets - all here in real time - suggest a pretty good time is being had by all.

We have just one editorial suggestion for the tasters - designated drivers please.

Simon Says: Walmart U.S. Chief Unveils 'Walmart Express' Logo; Says Hundreds of Smaller-Format Stores On the Way


Walmart Stores, Inc. today unveiled the new logo (above) for its new "Walmart Express" convenience-oriented, food and grocery-focused smaller-format stores. Express is one of three new smaller-format store banners that Walmart has either launched ("Walmart on Campus") or is preparing to launch. The third format and banner is "Walmart Market."

Read our story from yesterday about "Walmart Express" here - March 9, 2011: Going Rural: First Three Smaller-Format 'Walmart Express' Stores Will Be in Small Town Arkansas

The logo unveiling was part of a presentation made today by Walmart U.S. president and CEO Bill Simon, at the Bank of America Merrill Lynch Consumer Conference.

At the conference Simon also said Walmart will rebrand its "Walmart Neighborhood Market" to "Walmart Market." You can view the "Walmart Market" logo here. You can also view a slideshow of Simon's presentation at today's conference here.
The "Walmart Market" stores will vary in size from on the low-end 25,000 to 30,000 square feet to as high as 60,000 to 70,000 square feet in some markets, Simon said.

The current "Walmart Neighborhood Market" supermarkets (about 200 in the U.S.) average 39,000-45,000 square-feet. Walmart has also had a smaller-format (about 20,000 square-feet) "Neighborhood Market by Walmart" store open for a couple years in Rogers, Arkansas. That store serves as the inspiration for the "smaller-end (in terms of square-feet) "Walmart Market" stores.

The head of Walmart's U.S. division said today the retailer plans to open hundreds of smaller-format stores over the next three years under the "Walmart Market," "Walmart Express," "Walmart on Campus," and perhaps other formats and names.

Walmart Stores opened its first "Walmart on Campus" store early this year on the University of Arkansas, Fayetteville campus. The store is about 3,500 square-feet. It offers a selection of convenience-oriented food, grocery and general merchandise items and has a pharmacy.

Simon said today Walmart's smaller-format push also includes possible acquisitions, which is something we've previously reported the mega-retailer from Bentonville has been considering doing. Among the potential acquisitions we've suggested readers look for is, on a national scale, the Rite-Aid drug chain. As we've said, Rite-Aid is ripe for an acquisition, as it's value has been in penny stock territory for far to long.

Also look for Walmart to make various regional acquisitions as part of its smaller store strategy, particular if it can find suitable deals in places where it plans to significantly focus the smaller stores, such as California, the Pacific Northwest, metro Chicago, New York and other east coast and New England regions.

Look particularly for Walmart to focus any such acquisitions in urban regions, again in U.S. regions where it has little current retailing presence. For example, sources recently told us Walmart has looked at some of the smaller stores A&P supermarkets is selling, and might sell if the offer is decent, in New York City and other metropolitan region on the east coast.

Approval of any acquisitions won't be a piece-of-pie for Walmart however, particularly any bog ones. Walmart's Simon said today, confirming what we reported in our piece yesterday, that the "Walmart Express" stores will be 15,000 square-feet. He said Walmart Stores plans to test different mixes of products in the first batch of "Walmart Express" stores as it fine tunes the new convenience-oriented format. "We are going to be adding hundreds of these in the coming years, and maybe more, depending on how these work out," he said.

The Walmart USA chief wouldn't say where the first "Walmart Express" stores will open, instead saying "secret handshake" is required to learn that information. But secret handshakes aside, we reported on where, and when, the first three units will be in our story yesterday here: Going Rural: First Three Smaller-Format 'Walmart Express' Stores Will Be in Small Town Arkansas.

Here's some more of what Simon said about the retailer's smaller-format store plans, and how it fits in with Walmart USA's multi-channel strategy:

"We have been hard at work on this roughly 15,000 square-foot format ['Walmart Express.'] We're in the process of developing and we will open in the second quarter in both urban and rural pilots with pharmacy and without pharmacy, varying levels of fresh and other products, product assortment. The aim here, folks, is to get the right model so that we can rapidly roll these things out. At our peak we built about 350 supercenters in a year, so when we get this thing right, these are going to come real fast and we're real excited about this format.

We've been working kind of -- trying to work beneath the radar on this thing, although some of it has been a little bit above the radar I guess as you would say, and in the papers recently.

And there are also a couple of prototypes that have been built in super secret locations that I can't tell anybody about and there's a secret handshake to get in. But they're really, really nice and I think what you will see is a real effective implementation of a strategy that takes a continuum of retail from the -- as close as you can get to -- the small formats as close to the customer as you can get has the high velocity items that the customer wants as you move through the size from Express to market supercenter, you can flex inventory and assortment based on what the customer wants.

And if you overlay all of that with walmart.com and the multichannel experience, you can have whatever you want, whenever you want in a seamless supply chain. That is incredibly powerful and that's what we will be working on when these things open in the second quarter.

We also opened our first Walmart on Campus as a really, really cool format that the first on is on the campus of the University of Arkansas. We like to try things close to home so we can see it and play with it and tweak it a little bit. Frankly it's doing way better than anybody anticipated. It has a pharmacy in it and it serves the college students on campus with the pharmacy. A great, great price, as you know, from our pharmacy offering as well as pretty well everything that a college student needs with an almost endless supply of macaroni and cheese and Ramen noodles along with everything else that they go with.

There's been a lot of interest from a lot of other college campuses, the universities on this project, and it's something that we think is going to play out pretty well for us.

Small formats: I want to take just a minute to talk to you about it. It's something that is not new to Walmart, not new at all. We have -- in fact, most of our markets around the world operate small formats from Todo Dia in Brazil to Bodegas in Mexico, ChangoMas is in Argentina, PALi is in Central America, this one is from Costa Rica.

We run small formats all over the world and these small boxes are among the most profitable businesses that these countries run. So as we borrow and learn from them to build the US small format portfolio, we think we can deliver that end-to-end continuum that will give access to customers wherever they might be with the products that are most relevant to them in the markets that they are in.

And that's the last bullet point here and that's the multichannel element of this thing. The whole thing becomes kind of turbocharged or supercharged or multiplier with multichannel. We believe we are in a unique position in that we operate in more than one channel. There are lots of great brick-and-mortar retailers. There is coming on to be many, many great e-commerce players. But nobody who has the e-commerce business that we have at Wal-Mart.com where the business is just terrific and the brick-and-mortar business that we have, if we can enable all of these formats digitally to provide this experience to the customer."

Simon also said at today's investor conference that Walmart is expanding expanding its "Pick Up Today," program, which allows customers to order and purchase items online at Walmart.com and pick them up in stores. The program is currently available in 750 stores but will be expanded to nearly 3,600 locations by June, Simon said. Walmart issued a press release on the expansion of its "click and pick up" program today. you can read it here.

We discussed how the "Pick Up Today" program, which Simon says he want to change to "Pick Up Now," and expansion might fit in with Walmart's new smaller-store strategy in our piece yesterday, which is linked above.

Walmart's Smaller Store Strategy: Summing it up

In summing up Walmart's current smaller-store strategy, at present the retailer is focusing on three formats and three banners:

>"Walmart Express," which are food and grocery-focused but not exclusively, convenience-oriented stores designed to be located in urban and rural areas primarily. The stores can be as small as 5,000 square-feet but likely will average about 15,000 square-feet in size. (See our piece from yesterday for additional details.)

>"Walmart Market," which will include all of the existing "Walmart Neighborhood Market" stores (the rebranding) as well as new units. The stores will vary in size from 25,000 to 30,000 square feet to as high as 60,000 to 70,000 square feet. The geographic focus of the format is suburban, urban and rural.

>"Walmart on Campus," which is similar to the "Walmart Express" format but focused on college and university campus locations. Sizes will range from about 3,000 square-feet to about 5,000 square-feet. Some units could be slightly smaller, others slightly larger. It all depends on the locations and some additinal variables.

It's important to note that Simon made zero mention of Walmart's "marketside by Walmart" format and existing four stores in suburban Arizona today. That's because, as we've been reporting for some time, the format is going away.

Walmart U.S. president and CEO Bill Simon talked about numerous other aspects of the retailer's U.S. business, including plans and strategies, at the Bank of America conference today. You can view a full-transcript of his presentation here. There's also a webcast you can view here.

Fresh & Easy Buzz will be offering additional analysis on Walmart's smaller-store plans and strategies, in the coming days, as we've been doing extensively for over three years. Stay tuned.

Related Stories

March 9, 2011: Going Rural: First Three Smaller-Format 'Walmart Express' Stores Will Be in Small Town Arkansas

February 22, 2011: Walmart Stores, Inc. Announces the Name For its New Smaller-Format Food & Grocery Stores: 'Walmart Express'

February 22, 2011: The Name Game: Satire Columnist Earl Grey Smells A 'Neighborhood-Express' Conspiracy Involving Tesco and Walmart

January 10, 2011 story: Walmart 'Gets Real' With Smaller-Format Grocery Store Initiative in California; First Stores On Tap

January 11, 2011: 'The Insider' - A 'New York State of Mind': 'The Insider' On Walmart, Apollo Global Management, Tesco's Fresh & Easy and the NRF in New York City

October 13, 2010: Simon Says: Walmart U.S. CEO Outlines Smaller Store Strategy and Plans; Walmart to Offer Groceries Online in USA

October 12, 2010: 'The Insider': Live-Blogging Walmart Stores' 17th Annual Meeting For the Investment Community

September 20, 2010: About Today's Walmart Stores, Inc. Smaller Stores Media Frenzy: We Scooped it On July 6, 2010

July 6, 2010: Walmart Looking for Store Sites in Northern California For 20,000 Sq-Ft Neighborhood Market by Walmart Prototype Store

September 23, 2010: Revisting 'marketside by Walmart': Format As We Know it On the Way Out But Some or All Of the Four Stores Could Be Converted

September 29, 2008: Special Report: Wal-Mart, Inc. Studying Second Small-Format Food and Grocery Store Concept; the 'Bodega' or Modern Version of the Corner Grocery Store

Wednesday, March 9, 2011

Northern California Launch: Tesco's Fresh & Easy Neighborhood Market Opens Store in Pacifica Today

Tesco's Fresh & Easy Neighborhood Market opened its third store in Northern California today, fresh on the heels of opening its first two grocery markets in the region last Wednesday.

The Fresh & Easy store (pictured at top), which opened to a big crowd of customers at 10 a.m this morning, is located in the Pedro Point Shopping Center, at 5550 Coast Highway in Pacifica, which is just a short drive from San Francisco.

Like at all Fresh & Easy store grand openings, today's event at the Pacifica market was kicked off with a ribbon-cutting, followed by a few words by representatives of the Tesco-owned grocery chain and local dignitaries.

Following the ceremonial activities, the doors were opened at 10 a.m. to what was a huge crowd of people waiting to get their first look at the store in Pacifica's Pedro Point neighborhood. Store employees gave the people waiting in line cups of Minestrone soup (a good idea in Pacifica, which is famous for its cold and damp morning fog) and bottled water.

In addition to the crown of shoppers and just plain curious, the United Food & Commercial Workers (UFCW) union, which has been attempting to organize store-level employees of Fresh & Easy Neighborhood Market for over three years, had numerous representatives attending today's grand opening of the Pacifica store.

In fact, as you can see in the photograph above taken this morning by a Fresh & Easy Buzz correspondent who attended the grand opening, the UFCW union organizers and Representatives of Tesco's Fresh & Easy - see the players as labeled in the photo - appeared to coexist rather well, despite having very different agendas today.

The UFCW organizers attempted to persuade people attending the opening not to go inside the store because Tesco's Fresh & Easy is non-union. The union representatives also distributed leaflets describing the UFCW's campaign to unionize Fresh & Easy store workers, as they do regularly at the stores. According to our correspondent, very few shoppers attending the grand opening this morning were motivated not to enter the store after interacting with the union organizers.

The UFCW Representatives were also video taping at the grand opening, along with counting the number of shoppers attending the event, as well as counting the number of people who decided not to go inside the store after the union folks interacted with them. [Note: The woman holding the writing pad in her hands (far right) in the photograph at the very top is the UFCW union's "counter."]

Tesco's Fresh & Easy distributed copies of its weekly advertising circular and coupons (a couple for $5-off purchases of $20 or more and one offering a free reusable canvas shopping bag with any $10 purchase) to residents of the Pedro Point neighborhood prior to the stores opening this morning. The ads and coupons seemed to drive many of the shoppers to the store, evidenced by the fact many of those waiting in line were holding the ad flyers and coupons.

A resident of the neighborhood, who is a member of the Pedro Point Community Association, said the store was a "madhouse" when she was there at 10 a.m., saying she left after a while and went home, coming back later in the day to do her shopping.

"Folks were pleased with the prices and some of the selection. I know my friends were disappointed that the emphasis is on the 'easy' and not on the 'fresh'. I think a number of people thought it would be more organic than it is, she said today.

"For those of us who live on the west side of Highway 1 it will be nice to not have to cross the highway for a quart of milk. Some folks seem to think that the store coming in will significantly change their lives. It will change our neighborhood - for better and worse - but it is hard for me to relate to those who think that this is the second coming."

She asked that we not use her name because "Pacifica is a small town and the Pedro Point neighborhood is even smaller." We agreed in order to protect her privacy.

As it does each time it opens a new store, Fresh & Easy Neighborhood Market donates $1,000 to a local non-profit group. The local beneficiary of the $1,000 donation from the grocer is the Pacifica Historical Society. And it's an easy bet Tesco hopes its Fresh & Easy store will become a part of the city's history.

Another local resident, W. Sims, who attended the grand opening this morning said when asked for an overall impression of the store: "I thought the prices were good. I had researched the specials before I went so I already knew I was going after the New York steak for $4.99pound. We got four steaks for $12.80, Great price. We did purchase two frozen P.F. Changs Meals for $7.99. I will add some rice and have a reasonably priced meal."

Regarding the grand opening today, Sims added this: "I wandered up and down almost all the aisles but more and more people were coming in so we took our stuff and headed for the check out. We will have the fresh&easy tiramisu for dessert tonight. I definitely will go back in a few days when the crowd subsides. I did talk to the women in front and back of me in the line. Both were glad the store was open, and offering unique and reasonable priced groceries.

Fresh & Easy Neighborhood Market's road from acquiring store location, which it owns, in the Pedro Point chopping center to opening the store today has been a long and interesting one.

It also happens to be a road Fresh & Easy Buzz has covered and written about extensively. (Perhaps the Pacifica Historical Society, flush with it's $1,000 donation from the grocer, will include our coverage in its archives if Tesco's Fresh & Easy remains in Pacifica long enough to achieve historical significance?)

Therefore, in case you're a history buff - or just like to be able to follow a grocery retailing story from inception to the opening of a store - below are those stories from Fresh & Easy Buzz, starting from the beginning.

Follow the Story: Tesco's Fresh & Easy Neighborhood Market in Pacifica

February 3, 2011: Fresh & Easy Neighborhood Market Spokesman Confirms Our South-to-North Distribution Reports in Talk to Pacifica, California Group

January 12, 2011: First Northern California Fresh & Easy Neighborhood Market Stores Opening March 2; Nine More to Follow March-April

December 27, 2010: First Look at the Pacifica, California Fresh & Easy Neighborhood Market Store, One of the First Opening in Northern California in Early 2011

July 21, 2010: Vacant Fresh & Easy Neighborhood Market Store in Pacifica, California Has the City's Mayor in a Pickle

July 18, 2010: When it Comes to Northern California - its Competitors are Rome Burning and Tesco's Fresh & Easy Neighborhood Market is Nero Playing the Fiddle

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

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 7, 2008: Fresh & Easy Corporate Reps to Meet With Pedro Point Pacifica, CA Neighborhood Residents to Address Concerns Over Store to Open in 2009

June 24, 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

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