By Roy Reynolds
We didn’t need another reminder of how bad business is getting in California, and this one hits pretty close to home: Fresh & Easy supermarkets may be sold off by Tesco. Verbatim from the LA Business Journal is this paragraph:
Wednesday, December 5, 2012
Tesco is poised to leave the United States after spending five unprofitable years and $1.61 billion on an ill-timed American expansion that became one of the British supermarket giant’s biggest-ever failures, the Wall Street Journal reports. Its chief executive said Wednesday that the company will likely sell or close 199 Fresh & Easy stores. Fresh & Easy is headquartered in El Segundo and many of its stores are in Los Angeles County.
The chain’s had as many as ten locations in Orange County, altho one recently closed in Fountain Valley. One of their policies many of us Conservatives liked was that they were non-union — I wrote about their struggles in that area last year when they were under an assault from the banana scanners guild to coerce their clerks into joining them to fight their capitalist oppressors: Fresh and Non-Union. The State also did them no favors by passing truly stupid legislation to force them into manning their checkout lanes to deal with IDing liquor sales.
Retail grocery is one tough business. Margins are generally very low, and there’s theft and spoilage to deal with — during the last grocery workers strike, the rumor on the street was that Albertson’s was near bankruptcy (no reason they’re still not). Both chains are victims of Obama’s economy and their eventual closing when, not if, they happen are going to put even more people out of work. And the State didn’t do them any favors either.