Business & Tech
Fresh and Easy Bought by Investment Firm
Fresh & Easy has 19 stores in the Bay Area, including two in Hayward and one in Pleasanton.
Written by Vanessa Castañeda
A US-based investment firm announced Tuesday that it is purchasing Fresh & Easy Neighborhood Markets from the United Kingdom-based owner Tesco PLC, bringing years of uncertainty to a close.
The decision represents the best outcome for stakeholders, said Philip Clarke, Tesco Chief Executive Officer.
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“It offers us an orderly and efficient exit from the US market, while protecting the jobs of more than 4,000 colleagues at Fresh & Easy,” Clark said.
The grocery store chain first opened stores in U.S. in 2007, bringing about 200 stores to the country — with 19 locations in the Bay Area, including two in Hayward and one in Pleasanton.
"It just became clear to us that the journey to sustainable returns was going to take too long," Clarke told reporters, according to Reuters. "It's likely but not certain that our presence in America will come to an end,” he said in late 2012.
Early Tuesday morning, that prophecy solidified. Yucaipa Companies LLC announced it would be fully acquiring the company within the next three months.
Ron Burkle, Managing Partner at Yucaipa, said Fresh & Easy has a tremendous foundation.
“Tesco should be applauded for giving their customers an affordable, healthy, convenient shopping experience,” Burkle said. “Its dedicated employees and great base of customers give us a solid starting point to complete Tesco's vision with some changes that we think will make it even more relevant to today's consumer,” he said.
Yucapia Companies specializes in strategically repositioning the businesses it absorbs by changing the way they operate. Burkle said the Fresh & Easy shopping experience would continue to be a “next-generation convenience retail experience.”
The grocery store chain first opened stores in U.S. in 2007, bringing about 200 stores to the country — with 19 locations in the Bay Area, including two in Hayward and one in Pleasanton.
Many Union City residents shop at the Fresh & Easy located at 31049 Mission Blvd. in Fairway Park. The other Hayward store is located at 19691 Hesperian Blvd. near San Lorenzo. There were reports in 2011 that the chain was eyeing a location in Fremont, as well.
In late 2012, the company’s profitability strategy was not going according to plan, which forced it to close multiple stores. Some said the company’s primary competitor Trader Joe’s was too well established in the market; their customers were too loyal to change their food-buying habits without a very good reason. Others say it was related to personnel problems. Workers were rioting and demanding wage increases in 2011."It just became clear to us that the journey to sustainable returns was going to take too long," Clarke told reporters, according to Reuters. "It's likely but not certain that our presence in America will come to an end,” he said in late 2012.
Early Tuesday morning, that prophecy solidified. Yucaipa Companies LLC announced it would be fully acquiring the company within the next three months.
Ron Burkle, Managing Partner at Yucaipa, said Fresh & Easy has a tremendous foundation.
“Tesco should be applauded for giving their customers an affordable, healthy, convenient shopping experience,” Burkle said. “Its dedicated employees and great base of customers give us a solid starting point to complete Tesco's vision with some changes that we think will make it even more relevant to today's consumer,” he said.
Yucapia Companies specializes in strategically repositioning the businesses it absorbs by changing the way they operate. Burkle said the Fresh & Easy shopping experience would continue to be a “next-generation convenience retail experience.”
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