Unable to achieve the scale they needed for profitability
within a reasoned time frame and under pressure at home. Tesco has been asked over and over again what
are they going to do with the “American experiment? Tesco continues to insist that repositioning
to a smaller footprint while closing miss placed units with wrong components is
the answer. Why not convert them to Wawa’s?
Wawa works!
We think they might consider selling the lot too well funded
German owned Trader Joe’s might be one of the best solutions. Another might be leasing all the units to
Eatzi’s! Americans love Eatzi’s food
offerings, package sizing and mix and match meal components. Eatzi’s is
America’s first Grocerant and positioned for growth. Phil Romano has done and can do what the
Tesco team could not, sell food. By the
way we can help too! Do you think that
Walgreens should buy Fresh & Easy? Look at the success Walgreens is having
in Fresh food that is ready-2-eat in NYC, Chicago and Boston.
Bloomberg reports that Safeway stores are an idea candidate
for a takeover. Clearly Safeway is
burden with legacy grocery store processes and management mentality from 70’s,
80’s, and 90’s that they simply refuse to let go of. I will give Safeway some credit, they
understand that the customer is dynamic not static. Yet when remodeling units into “lifestyle”
stores they expanded floor space and what consumer wanted was a smaller
footprint, fast in-out, with ready-2-eat and heat-N-eat fresh prepared food (legacy
mentality).
Success does leave clues and legacy food retailing is in
flux. Dollar stores are cherry picking all
legacy food retailers while entering the fresh food niche. Walgreens is finding
success in fresh prepared ready-2-eat and heat-N-eat food in urban
locations. The grocerant niche is booming
garnering share of stomach.
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