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Fresh & Easy parent company to close all stores; unclear who will take over


Mayor Ed Lee gathers with Presidio Middle School students around the $1,000 donation check that Fresh & Easy presented to the Richmond District Neighborhood Center on opening day of the store.

NPR reported today that UK’s largest retailer and owner of the Fresh & Easy supermarket chain, Tesco, announced that they will close all of their Fresh & Easy grocery stores.

One of those stores is located on 32nd Avenue near Clement here in the Richmond District. The store just opened in June 2011, taking over a large space with CVS Pharmacy that had been vacant since 2004.

In January, Tesco told customers via email, “We want to assure you: we don’t have plans to close stores.” At the time, Tesco was on the hunt for a buyer for the nearly 200 store chain. There were even rumors of talks with Walmart.

Tesco will take a huge loss by closing down all of their Fresh & Easy stores – roughly $1.5 billion US – but says it should save them much more in the long run. There are two other Fresh & Easy stores in San Francisco that will also close – one at Silver Avenue and Merrill Street, and one at Third Street and Carroll Avenue.

CVS Pharmacy operates in the other half of the building on 32nd Avenue where Fresh & Easy is located. They do not have any plans to close.

No word yet on when Tesco will begin shutting down the Fresh & Easy stores, but the UK Daily Mail reports that Tesco has “interest from buyers for all or parts of the [Fresh & Easy] business” and that “it would be at least three months before the tender process was concluded, but the group hopes to achieve a sale of Fresh & Easy as a whole to avoid redundancies among its US workforce.”

So it looks like that space on 32nd Avenue – well at least half of it – may once again be vacant. Let’s hope it won’t remain that way for too long.

Thanks to reader Richard R. for the tip.

UPDATE: On April 17, Fresh & Easy sent a message to its email list and posted to its blog with the following statement:
“As you may have heard or read today, our parent company Tesco updated on the future of Fresh & Easy. We appreciate all the support and love we’ve received from our loyal customers and even though our parent company plans to leave the US, we’re pleased to confirm there are no plans to close any portion of Fresh & Easy. While we don’t yet know who our new owner will ultimately be, Tesco announced it has already received interest from a number of parties including groups looking to purchase Fresh & Easy as an operating business.

Sarah B.


A large crowd gathers outside the front entrance of the Fresh & Easy on opening day in June, 2011.

21 Comments

  1. As an employee at this store: Specifically, there are no plans from F&E corporate to close. Tesco’s announcement indicates that after at least three months they will no longer bankroll the chain, they will either sell it, or failing that, then perhaps close down them down with no sale. More likely, at least the profitable locations will be sold. In terms of good news for the Richmond, our store is quite profitable, indeed it is the most profitable location in Northern California. If it remains profitable, it is much more likely that this location will be part of a sale, and will remain open in some form.

  2. Bummer, I really like this store. I’ll keep going there until they close or are sold. Now that Haig’s is no more, F&E is where I get my British groceries.

  3. I shop at this store 3-4 times a week, and think it’s a very valuable contributor to the neighborhood. I will be pissed if this space become vacant again.

  4. It was just announced on ABC 7 news at 6, that Tesco is selling all F&E stores in California. I do not know whether that means they are looking for a buyer or have a buyer already.

  5. I just received the following email since I have a Friends Reward card. The email reiterates what Andrew said above. The email:

    “As you may have heard or read today, our parent company Tesco updated on the future of Fresh & Easy. We appreciate all the support and love we’ve received from our loyal customers and even though our parent company plans to leave the US, we’re pleased to confirm there are no plans to close any portion of Fresh & Easy. While we don’t yet know who our new owner will ultimately be, Tesco announced it has already received interest from a number of parties including groups looking to purchase Fresh & Easy as an operating business.

    We’re focused on continuing to bring you the same delicious, wholesome and affordable food you have come to expect from us. And rest assured, your favorite rewards program has a lot of exciting things in store for you including new Made For Me coupons launching next week, and some enhancements to our mobile apps that are coming soon….”

  6. It is inevitable. So sad. I really enjoyed going up and down those aisles looking to fill my basket for $25 worth of groceries. I love their products without artificial flavor or preservatives. Where am I going to get my $2.00 avocados? They are the best. Need to ripen out and then put in the refrig until ready to eat. Au Revoir Fresh & Easy and your dangling coupons tempting me to visit each week!

  7. Seriously, but for the inexplicably stupid executive decision to forego checkers and thereby force customers to attempt to complete their checkouts with a clunky machine/computer, these stores would be ideal. What a mind-bogglingly bad decision to avoid paying a few bucks more for checkers, and instead turn off customers to their otherwise-excellent goods. I truly hope a buyer is found who will maintain the basic model, hire a couple of checkers for some lanes (I don’t mind self-checkout when I have only a couple of items, as with Lucky’s), and keep this vibrant store humming along.

  8. I’m still dreaming that a Trader Joe’s might appear there one day.

  9. Toby – agreed. Love their avocados! And the price.
    Paul – I have the same dream.

  10. If these stores were pervasive in the US, they would still be a bad joke. The word I use to describe the “environment” (debt structure?) is artificial, i.e. ersatz food.

    This is, was and will never be an American supermarket (per se). This isn’t analogue to Whole Foods, this isn’t even remotely similar to a Trader joes, this is not anything like a Safeway “market”, this isn’t a Raley’s store, and it would be inappropriate to place Fresh & Easy into the “Super Market” paradigm.

    It is delusional to call this Fresh and Easy chain a “market”, “mart” (“supermarket”) per se and it will not be missed by anything other than a vocal minority.

    And as to (that) type of behavior :::

    “our store is quite profitable, indeed it is the most profitable location in Northern California. If it remains profitable, it is much more likely that this location will be part of a sale, and will remain open in some form.”

    That’s type of nonsense is exactly what I mean when I say “vocal minority”, and “British groceries…” is an atrocious oxymoron!

    \o.0/ The Fresh & Easy store and the “anti worker” plasticine CVS pharmacy are both undesirables in the Richmond district (inner/outer).

  11. Message to Fresh & Eash Customers:

    Posted on Wednesday, April 17, 2013

    As many of you have heard or read today, our parent company Tesco updated on the future of Fresh & Easy. While we don’t yet know who our new owner will ultimately be, Tesco has already received interest from a number of parties including groups looking to purchase Fresh & Easy as an operating business. We appreciate all the support and love we’ve received from our loyal customers and even though our parent company plans to leave the US, we’re pleased to confirm there are NO PLANS TO CLOSE any portion of Fresh & Easy.

  12. Hopefully, a market of some sort will remain in this location. I will miss Fresh and Easy for many reasons one of which is because they aren’t the typical American supermarket. I don’t think a “typical market” would do well in this neighborhood either.

  13. Everyone must also take into consideration that they signed a fairly long lease (15-20 years) and it is corporate backed by Tesco, which means they likely won’t renege on it. It’s in their best interest to keep a store open, even if it means handing over the reigns to a competitor store. Very few retailers with such long leases would simply close the doors.

  14. So this ends up being a non-news story as they are not actually closing?

    And to “antivulgarian”: what?? Most of what you just wrote did not make a lick of sense.

  15. I don’t want a hipster elitist Trader Joe’s. Just a decent place with nice quality foods at a good price with a nice staff. I guess like the old Lucky’s was. Just roasted one of F&E’s pork butts, and t’was very nice. As is their garlic marinated loin. Some good stuff in there, and love the Heinz beans!

  16. In response to “antivulgarian,” I’m not really sure how that quote from me is “nonsense.” I am actually an employee, I have access to actual sales numbers, and that was in fact a true statement. I can assure you that the vast majority of us would like to keep our jobs, in the same way that many in the neighborhood would like to continue to have a grocery store at 32nd, regardless of the branding.

  17. @Andrew: nicely handled, thanks for keeping it civil and accurate.

  18. Any news about the Grocery Outlet to open on Geary and 28th? It was slotted to open about now but there doesn’t seem to be any activity there or announcements – does anyone have an update?

    Kind of wish CVS were being sold instead of F&E, they are a serious train wreck and I always feel bad for the employees stuck in the oncoming headlights.

  19. I’ve always hoped that 24-Hour Fitness would move into that space. Just my dream, I guess!

    BobbittyBob, it’s funny that you call Trader Joe’s hipster and elitist, when they are in fact a decent place with nice quality foods at a good price – with nice staff! 🙂

  20. Absolutely speaking, there has not been an American “Supermarket” (SIC) at 32nd / Clement since Lucky’s / Albertson’s closed its doors.

    Please allow me to re-post the 2nd paragraph with a slight EDIT to the 1st sentence.

    quoting:

    “This is not and will never be an American supermarket (per se). This isn’t analogue to Whole Foods, this isn’t even remotely similar to a Trader joes, this is not anything like a Safeway “market”, this isn’t a Raley’s store, and it would be inappropriate to place Fresh & Easy into the “Super Market” paradigm.

    It is delusional to call this Fresh and Easy chain a “market”, “mart” (“supermarket”) per se and it will not be missed by any one other than the constituents of an emergent vocal minority.” Walmart sells groceries, produce, and clothes! \o.0/

    end quote :

    Obviously Andrew didn’t find my post ambiguous, but Andrew himself has a lot to learn in re: rational behavior. Andrew, have you consulted a dictionary for the definition of “objectivity”?

  21. Don’t want a Trader Joe’s! F & E isn’t perfect, but they have name brands, not TJ knockoffs and a wide selection of fresh poultry meat and really good fish. Some F&E brand items are very good, but you have some choice. It’s not all store brand. Grocery companies don’t like San Francisco because taxes are high and they have to provide health insurance for their employees, but SF is an insanely expensive city. Are the employes supposed to live in San Jose and commute? Yep. SF is becoming like Disney Land. The guests stay in the castles and palaces and the employees go home at night. Use to be a cool town.

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