StORES Magazine - August 2007 - (Page 32)

SUPERMARKETS Produce at SuperVALU. New Supermarket Paradigm? Arrival of Fresh & Easy may force competitors to “put food on a pedestal” BY SUSAN REDA, EXECUTIVE EDITOR Safeway’s stand-alone Citrine restaurant. esco’s Fresh & Easy concept is scheduled to open its doors on the West Coast two months from now. Describing the opening of this 10,000-sq.-ft. store as “much anticipated” might very well be the understatement of the year. Fresh & Easy has received substantial media coverage and has been the subject of scores of meetings among retailing experts and supermarket gurus from coast to coast. T it’s all about convenience and it’s all about freshness. If I were in their [supermarket execs] shoes, I’d be concerned.” While Fresh & Easy has the supermarket world’s attention, “it’s difficult to predict how the industry will be affected,” says Michael Sansolo, a consultant who splits his time between the Food Marketing Institute and MorningNewsBeat. “It would be a mistake to dismiss the Fresh & Easy concept as something that ‘won’t work here,’” Sansolo says. “There were those who thought Wal-Mart would never be successful selling fresh produce — and we know how that turned out.” Billed as a convenience destination emphasiz- “This is an The British are coming Tesco operates several different store concepts ing fresh food, Tesco hopes Fresh & Easy will unforgiving in the U.K., where its share of the grocery marwin over shoppers looking for smaller stores that marketplace, and ket hovers just above 30 percent. In addition, serve up quality food. Specifics about what Fresh Tesco is reported to be the third-largest super& Easy will look like, or precisely which prod- shoppers have an ucts will be on the shelves, remain under wraps, increasing number market retailer in the world (after Wal-Mart and Carrefour) and is often recognized for industrybut Tesco’s high-tech, high-touch method of of food choices. leading methods of collecting and using cusstudying shoppers, combined with its reputation No food retailer tomer data from its Clubcard loyalty program. for success in the U.K., has rattled some nerves in can afford to be So, is Tesco taking a seat at the stateside food the corridors of supermarket headquarters. complacent.” table – or is it about to eat off someone else’s Some experts, like Phil Lempert, widely known — Michael Sansolo plate? as the Supermarket Guru and “Today Show” “It depends,” Sansolo says. “Retailers who have done a good contributor and food trend editor, say U.S. supermarket execjob of focusing on market niches and shopper lifestyles are utives should be worried. “What Tesco does better than anyone else is they celebrate ready for a new competitor. Those who continue to run their food,” Lempert says. “They really have the consumer in mind; business the same way they did a decade or two ago are most 32 STORES / AUGUST 2007 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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