Tesco has started selling products from its American arm, Fresh & Easy, in UK-based stores. About 10 SKUs have made the journey into UK stores including prepared carrots, vegetable roasting trays and chopped casserole vegetables.
It is expected the range will expand in the coming months with Fresh & Easy chilled convenience foods and ready meals to appear on Tesco UK shelves. Although the same products are not on sale in Fresh & Easy stores, the brand ethos is the same, according to the retailer, "Fresh & Easy is built around great products and utilises the best of our product expertise. The products are free from additives, preservatives, hormones and trans-fats, and customer satisfaction scores for them in the US are among the highest in the group. We are bringing a bit of all of that knowledge and experience back to our home market."
The five-year-old California-based business has failed to take off, and investment in new US stores was cut earlier this month after the near-200 strong chain reported losses of £74 million in the first six months of the year. Group CEO Philip Clarke acknowledged the poor performance saying “we need more from Fresh & Easy”.
Analysts are questioning the motivation in introducing the Fresh & Easy label in its UK stores, saying it carries no brand equity and displays no obvious synergies in sourcing, packaging or marketing terms. It has been suggested that the US arm may receive a royalty payment for use of the Fresh& Easy brand, providing a source of income. (18 Oct)
© 2012 - ESM: European Supermarket Magazine
