Tesco winning US battle as Fresh & Easy declared 'new cult retailer'

LONDON - Despite negative UK reports to the contrary, Tesco's US venture, Fresh & Easy, appears to be winning shoppers' hearts and minds, according to independent research that called it an 'incredible success story'.

The brand got the best recommendation score out of 200 brand evaluations conducted by Execution Research, according to the Financial Times, which saw Execution's report. Nearly nine out of 10 shoppers said they would "highly recommend" the stores to friends and family.

The research findings provide a boost to the convenience chain, following reports it is suffering from low customer numbers and questions over its financial performance.

In a research note in March, Mike Dennis, a City analyst with Piper Jaffray, said that research among US suppliers had suggested first-half sales at Fresh & Easy could be $30m (£15m), compared with the $100m the City had expected. Dennis blamed the figure on "very weak" footfall.

Execution Research, which has no corporate relationship with Tesco, conducted interviews with nearly 700 customers in nine Fresh & Easy stores in Los Angeles in California, Las Vegas in Nevada and Phoenix, Arizona. Tesco has around 60 stores in total across the US with plans for a rapid expansion.

According to Execution Research: "Fresh & Easy is the new cult retailer. At the risk of doing the job of Tesco's public relations department, F&E is already an incredible success story."

People said Fresh & Easy was better than rival upmarket chains Trader Joe's and Whole Foods for freshness of product and gave more value for money than Wal-Mart.

The research confirmed customer numbers were low -- with the stores they were watching getting only 20-30 customers an hour -- but crucially Execution expects numbers to increase.

It estimated that the chain will have a turnover of $12bn within five years. Tesco is investing £250m a year in its expansion in the US.

You have

[DAYS_LEFT] Days left

of your free trial

Subscribe now

Get a team licence 

 Give your teams unrestricted access to in-depth editorial analysis, breaking news and premium reports with a bespoke subscription to 北京赛车pk10.

Find out more

Market Reports

Get unprecedented new-business intelligence with access to 北京赛车pk10’s new Market Reports.

Find out more

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now