Closing Time at Fresh & Easy

by on December 12, 2012 · 12 comments

in Activism, Business, Editor's Picks

 

SEE UPDATE FROM SEPT. 12, 2013 HERE

by Daniel Paredes/Frying Pan News

After spending more than $1.6 billion, Tesco, the world’s third- largest food retailer, has finally thrown in the towel and announced the closure of its Fresh & Easy stores. This move brings closure to the British company’s effort to establish a foothold in California’s highly competitive grocery industry. Many analysts believe this decision has been a long time coming, with Fresh & Easy stores never seeing the kind of market penetration that the U.K.-based giant expected from the chain. Investors cheered the December 5 announcement, but U.S. workers have reason to celebrate too — this marks the end of a five-year struggle with Tesco.

Like most new entrants into the grocery market field, Tesco planned to operate non-union. Indeed, a Tesco employee-relations director described the primary responsibilities of that job in an advertisement as “maintaining non-union status” and “union avoidance activities.” The United Food and Commercial Workers union (UFCW) sought to organize the company, called a boycott and Tesco resisted.

In 2009, a series of reports from UNI Global Union accused the company of rejecting a legitimate recognition request to form a union in one California store and claimed Tesco employed only part-time workers in the U.S., thereby preventing employees from earning a living wage. As a result, according to glassdoor.com, the average British Tesco Customer Assistant reported earning $11.05 an hour, while his Fresh & Easy American counterpart reported only $10.12 an hour.

Another article detailed insufficient pension and health benefits, and the company’s policy of forcing staff to count sick leave as holiday time off. Unsurprisingly, the reports from UNI Global Union also described pretty deplorable labor conditions at Tesco-related factories in Thailand, South Korea and elsewhere. Tesco’s stance was a surprise to some, given that the company is largely union in the U.K., but the trends are the trends, and another major retailer seeking to come to Los Angeles has fairly well established the pattern.

Of course, Fresh & Easy didn’t fail only because of its labor practices. Its signature self-checkout system was not only confusing for the general public, it was also considered dangerous by many. A 2009 report by the Los Angeles Alliance for a New Economy (LAANE) titled, “Self-Checkout: Is It Reliable for Selling Alcohol?” showed  the potential for minors to purchase alcohol; of stores with only self-checkout registers, 32 percent of participants under the age of 30 were not asked for identification when the system called over an employee, and 20 percent of all participants were able to bypass employee verification altogether.

This study and others like it prompted Governor Jerry Brown to sign Assembly Bill 183 into law on October 9, 2011, requiring all alcohol purchases to be made at full-service registers.

Tesco tried to sell itself as a solution to L.A.’s problem of food deserts, much as Walmart and other companies have done, but the promises have failed to live up to the reality. In fact, of the 13 Fresh & Easy stores that opened in the chain’s first month of operation, only one was in a census tract with significantly high poverty rates. Hemet, a town in Riverside County with two major supermarkets within a half mile, could hardly be called a food desert. A recent map from freshandeasy.comclearly shows their progress in locating inside Los Angeles’ inner-city neighborhoods has been limited at best.

And with that, we bid sweet adieu to you, Tesco, the multinational corporation that never cared much about the welfare of us Angelenos. May you be the first but not the last to go.

Material was reproduced from THE FRYING PAN website with permission from THE FRYING PAN.  © 2009 THE FRYING PAN. All Rights Reserved

avatar SHRED December 13, 2012 at 5:17 am

Good riddance.

avatar Marc December 13, 2012 at 8:51 am

Bye bye Fresh & Easy! Back to Trader Joes ;)

avatar Kel December 22, 2012 at 6:46 am

Ditto!!!

avatar Shelo December 25, 2012 at 2:01 pm

I loved fresh and easy

avatar Adam December 25, 2012 at 6:25 pm

This article is only partly correct. The store is considering closing its stores, at this point they have not made a decision if they are closing all, any or how many if they do.

avatar Elena December 27, 2012 at 2:14 pm

This is a very biased article, not taking in consideration the savings provided in food purchases to thousands of struggling American families. Fresh & easy has great prices for healthy food choices, including organics that families might not otherwise afford to buy. In addition to great pricing they also provide great coupons. I as well as many of my family and friends, will be very sad if the f&e doors close.

Instead of basing your article on Union provided info and numbers, you should interview the public on the street.

avatar Alex January 12, 2013 at 9:29 am

As others have pointed out, this article has some factual inaccuracies.

avatar John H January 13, 2013 at 6:52 am

I love Fresh and Easy and I would hate for it to close. The clerks there are very friendly and always willing to assist. You dont get that kind of assistance at Walmart. Lets support this market.

avatar Joe January 15, 2013 at 10:32 am

Fresh and Easy was always a Trader Joe’s wannabe.
Sure the clerks are “very friendly” but you always go back for the FOOD, not the smile.
A “friendly clerk” doesn’t make the belly happy … food does.
Trader Joe’s has both.

avatar Tracy January 16, 2013 at 8:21 am

Ummm, Tesco was started in 1919, long before Joe decided to start trading. If you were a travelin’ man, Joe (this is confusing), you’d know that the Tesco you get in England is a close relative of the Fresh & Easy down the street–same check out, same bakery and deli selections, same bagged vegetables. So it’s really a Brit thing, Joe, and it’s brilliant! Trader Joe’s is okay (whatever), but it doesn’t carry my husband’s favorite ham sandwiches–the kind we got on our travels through Europe.

The clerks are just a bonus, Joe, seriously, it’s all good from the prices to the pumpkin muffins! And Fresh & Easy, please don’t go! I’ve honestly never gotten excited about a grocery store until I met you!

avatar Genevieve February 17, 2013 at 1:41 pm

they are both British stores…but I do favor TJ’s, but FAE has grown on me, but if they close the one in my neighborhood, I better see TJ’s opening the doors next!

avatar Shannon January 16, 2013 at 12:42 pm

What’s with all the F&E bashing?
I love this store.
It’s a great alternative to TJ’s, and I love not waiting in line and being able to do my own checkout. And the food is delish. Nothing wrong with TJ’s either. There is certainly room for both.

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