keeping things simple at fresh& easy
We went down to San Diego this week to announce our first 7 stores there, and received a great welcome - we were covered by both local tv news and newspapers. But in chatting with journalists, a question came up which I thought you'd be interested in: how can you manage to sell fresh, high quality food at the same time as offering low prices that everyone can afford?
The answer? At fresh&easy, we have a passion for keeping things simple.
For example, why fill a shelf one product at a time if you can figure out a way to fill it twelve products at a time? It makes no difference to customers, it takes the same amount of effort, but it's twelve times faster. Good for reducing costs, which can then be reinvested in lower prices.
Or why use so much energy lighting a store when you can use natural light? You just need windows, and a way of turning down your lights during daylight hours - good for the environment, and good for reducing costs, which again can be re-invested in lower prices.
Perhaps the single biggest example is the way in which we're approaching our assortment of products. We will only have about a tenth of the range of a full size supermarket, which means that the sales of each individual product will be much higher. This in turn reduces costs across the supply chain, which once more can be reinvested in lower prices.
However, we haven't taken this approach just to reduce costs. In talking with people about their ideal shopping trip, a theme kept coming up: it's so difficult to find what you want when there's so many similar products on the shelves. As one person memorably put it - why do I have to choose between 15 different cans of tuna, after all, tuna is tuna!
So we've tried to be very thoughtful in selecting an assortment of products which will still let you to get all your regular shopping needs, but make it quick and easy for you to find what you want - and thanks to keeping it simple, with both high quality and low prices.
Have we got it right? Well, as ever it will be our customers who decide once we open later this year, and that's how it should be...
posted by Simon Uwins @ 4:08 PM
4 Comments:
Just read the Economist article 25th June.
Aside from smaller sized stores, you have nothing particularly unique as the model suggested what already exists in the metro DC and metro Richmond VA areas whatsoever.
What is particularly unique in the US of tailoring items stocked to local shoppers? Asian, Hispanic and African American customers can find "ethnic" goods in any of the local and major chains. Insofar as prepared foods are concerned virtually every food retailer flogs these things mercilessly whether it be Whole Foods, Safeway or locally Ukrops, a Richmond VA based chain of some 25 or so stores.
I am reminded of a Canadian corporation, Consumer Distributing, a retailer who was going to "revolutionize" the way American's shopped for a whole range of items. Needless to say it was a total flop and today there are virtually no major catalog distributor stores in any area I have lived in since 1980.
Good luck, I think you are going to need it! (PS, I am not in retail and anever have been.
As a former operator of a local large format drug store chain, we found it necessary to add new food items for the changing life styles of the 80's & 90's. We carried about 8,000 square feet of grocery items while being regularly pressured to increase variety at the same savings. As the market changed, we had to change as a deep discount format chain to a convenient format with the discount food. One major change in all of this was private label. What is the level of private label saturation that Fresh & Easy can manage while maintaining a local marketing target and a small number of outlets as you grow in the next year? Private label can help you offer lower prices and a greater amount of simplicity, but can it be solely substituted for a name brand can of tuna?
Through managing our chain, I found that the greatest amount of time was spent on keeping our look fresh and our stores friendly. These are two areas that are always difficult to manage and very unaccountable on paper. The green saving from the trucking and lighting are great changes that many retailers should observe. The press should try to focus on these types of aspects that Fresh & Easy is projecting. Great to have this coming to the market.
I think you have it right for now, but as soon as the first hour of business has passed, it will be time to get something else right. etc. etc. etc.
I think F&E's star attraction will be its prepared meals. Yes, other stores have them (Whole Foods, Safeway,), but they are pathetic; terribly expensive and visually unappealing. F&E: show these guys how its done. I understand R Design is handling the design-packaging. No, im not an insider. I stumbled on their website. Best, AJ>
F&E buyers, keep product mix simple yet have unique items within the category. At TJ's if the item didn't move within several weeks it was dropped. New items always being introduced and then disappearing keeps the customer comming back to see whats new, just what Costco does so well. Merchandising!! Packageing is very important, avoid too much infomation, customers are in a hurry and dont take time to read. I'm sure you studied the success of TJ's and their owners the Albrecht Brothers who own Aldie stores and others in Europe. Having managed a limited assortment store (SuperValu Foods, DBA Save-A-Lot) turns and selling $$ per foot are very important as also the GP%. I use TJ's as an example due to their loyality base, high demand, employee relations, also having the pleasure to work for them to learn their success. With 30+ yrs in the Grocery, (all store formats- C-store to big box) and F&B industry, TJ's has been the best employer to work with. As explained to me in my interview,W/ TJ, they put the employee first, before the can of corn. Happy employees,= high morale/loyality=high TEAM work productivity from management on down. Simple paperwork process. Weekly product knowledge of actual food and beverage samples for the employees. Top of the line retirement package and quarterly pay reviews. Oh! and the t-shirts are free!! That said, don't overly "micro manage" your employees, flood your management with paperwork. Work as a team and have fun! And when the customer (Celebrity) enters the store, WOW!! them with your excitement.
Post a Comment
Links to this post:
Create a Link
<< Home