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Tesco announces plans for 10 new Fresh & Easy stores in Las Vegas Valley

British grocer Tesco is defending its U.S. rollout of Fresh & Easy Neighborhood Market stores, unveiling in its Tuesday earnings report 10 new locations for local stores and evidence that they say shows the concept is performing better than expected.

The planned stores, all former Rite Aid drugstore locations, will be at Charleston Boulevard and Sloan Lane; Tropicana Avenue and Nellis Boulevard; Desert Inn Road and McLeod Drive; Lake Mead and Hollywood boulevards; Las Vegas Boulevard and Pecos Road; Eastern Avenue and Wigwam Parkway; Eastern Avenue and Fremont Street; Vegas Drive and Jones Boulevard; Vegas and Buffalo drives; and Las Vegas and Lake Mead boulevards.


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  • They will join 11 Fresh & Easy stores already open across the Las Vegas Valley.

    Tesco officials announced April 2 that they would take a three-month break from opening new Fresh & Easy stores so they could refine the concept, which features smaller stores that split merchandise 50-50 between national brands and Fresh & Easy house brands. Tesco representatives have emphasized the stores' easy maneuverability and have aimed for competitive prices on prepared meals, fresh fruits and vegetables and national-brand items.

    Fresh & Easy has received mixed reviews since it launched in November.

    A Review-Journal story earlier this month reported that analysts have estimated Fresh & Easy sales of $50,000 to $170,000 a week, below company targets of $200,000 weekly. Investment brokerage Piper Jaffray has pegged Fresh & Easy revenue in the brand's first six months at $30 million, about 70 percent below original projections.

    Tesco officials denied Tuesday in their quarterly earnings update that the Fresh & Easy concept was in trouble.

    They don't plan to supply detailed sales results for the chain until they release their September results. But they did reveal that Fresh & Easy's losses have totaled $123.4 million, slightly less than the $129.4 million they'd budgeted. They also said sales inside some of the 60 stores they've opened in California, Nevada and Arizona exceed $20 per square foot a week -- well above the roughly $7 per square foot U.S. supermarkets averaged in 2006, according to the Food Marketing Institute.

    Tesco officials said Tuesday that they would open 150 more U.S. stores in 2008 after they renew the company's expansion program July 2.

    They're forecasting about $200 million in Fresh & Easy losses in 2008.

    Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.

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    lakelady777 wrote on April 18, 2008 08:41 PM: I LOVE FRESH & EASY. No gimmicks, great samples, easy in & easy out. I love not being overwhelmed by 12 different choices of potato chips. The $5 coupons are awesome, especially with 2 teenage boys with healthy appetites. I've noticed new employees from those other "union grocery stores" so the pay must not be that bad. Besides, if you want to make a lot of money, stay in school & get an education, learn a trade, or learn to budget. Quit whining that you can't afford champagne on a beer budget.


    Don wrote on April 18, 2008 01:46 PM: Tesco, you are ignoring a market that would support your style ... Downtown! McNeil Estates, John S. Park, Rancho Nevada .. all these neighborhoods are populated by new urbaninsts looking for unique urban markets. Of course, we'd prefer a Trader Joe's, but we'll take a F&E too.


    Paul wrote on April 18, 2008 01:42 PM: "RG" is clearly a union shill, proving once again that anonymous commentary on the internet is WORTHLESS DRIVEL.


    J wrote on April 18, 2008 01:41 PM: Unions are an outdated and outmoded manner of managing workforces. They only serve to foster an atmosphere of animosity from the outset of the employee-employer relationship. They haven't played a positive role since the 1960s.


    David wrote on April 18, 2008 12:51 PM: Everyone is so excited that a non union store is coming in to offer lower prices, but at who's expense? The employees. I guarantee employees do not command the same salaries as those at Vons and the likes. How would you feel if people rejoiced that they can now do business with your competitor that pays its employees less than you are making? We all are concerned about illegal immigrants coming in and lowering the standard of living for the rest of us. We are all concerned that WalMart does not pay competitive wages to its employees and us taxpayers are picking up the bill for medical costs that WalMart only fractionally pays. What do you think these types of stores are doing for those working in the grocery industry?
    Everyone wants cheaper prices and yet everyone cries wolf when their own wages are cut or are stagnant. You can't have your cake and eat it too folks.


    Jb wrote on April 18, 2008 12:25 PM: This concept should have been introduced on the East Coast. I could see something like this kicking butt in NYC and the suburbs of NJ where there are plenty of small store sites available, but not to many mega store sites.


    Whatever wrote on April 18, 2008 12:02 PM: From the Fresh&Easy facts Website (at the bottom):

    Fresh and Easy Facts, a project of Grocery Workers, Food Industry Professionals and the United Food and Commercial Workers.

    Sounds like some union locksteppers are afraid of a little competition....


    I LOVE FRESH AND EASY wrote on April 18, 2008 11:14 AM: Fresh and Easy is a great store. I am super excited that they are opening one up even closer to me!!!!


    MrsNLV wrote on April 18, 2008 10:45 AM: Before you go into a Fresh & Queezy you might want to check this out:

    http://www.freshandeasyfacts.com/


    C wrote on April 18, 2008 10:42 AM: I am a regular F&E shopper. They DO have samples, their aisles are not narrow, and while their non-refrigerated produce, indeed, is displayed in plastic baskets, it certainly does not appear "pithy, cheap, and unsightly".

    I have been consistently pleased with the quality of the products I have purchased, and the employees are always friendly and helpful. And their regular prices are always approx. 30% lower than the Vons less than .5 miles away.

    And the $5 off coupons are really nice!


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