According to The Financial Times, Fresh & Easy is embarking on an overhaul of stores as it looks to achieve its target of reaching break-even by 2012-2013. Tesco believes its key point of difference in the US remains its focus on fresh fruit and vegetables and freshly prepared meals. The overhaul of stores is aimed at highlighting this point of difference.Under the plans, flowers will move to the entrance of stores from the centre currently. Space freed up will be filled with fresh produce and bakery products from an instore bakery in half of stores. Tesco plans to introduce instore bakeries across 100 outlets in partnership with baker Il Fornaio. The company is also testing fresh coffee to take away.
Tim Mason, Fresh & Easy CEO said: “The whole point about Fresh & Easy is that it is a very, very simple retail model. So, we were very wary about adding things in that appeared to add cost. What we have discovered with trials, and experience, and the benefit of being open, is that this is a cost that is worth adding.”
Tesco also plans to reduce health & beauty ranges to put more emphasis on food, introducing an additional 500 grocery products. A marketing campaign will be launched once the revamp is complete.
Tesco will also introduce glass doors on chilled cabinets in 100 stores and wood floors at one-third of outlets.
On profitability, Mason claims some stores are already profitable, although one-half to two-thirds of outlets would need to move into the black to achieve the break-even target.
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