Quantcast

Political news & views for independent-minded voters 

Facebook Twitter Gplus E-mail RSS
magnify
Home 2012 Elections Fresh & Easy Closing Down or Selling

Mike Dalati Ad


formats

Fresh & Easy Closing Down or Selling

Karina Onofre Banner


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:

Tesco Expected to Leave U.S. Market

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.

 

 

 
 Share on Facebook Share on Twitter Share on Reddit Share on LinkedIn
3 Comments  comments 

3 Responses

  1. j. karish

    Sad to hear that. I go there often – Quality stuff, a little pricey, but convenience is. Perhaps the final nail had more capitalistic roots – the local roll-out of grocery – focused Mini Walmarts, like the one in GG at the old Pep Boys site? (Have not seen the original article) If they are a potential buyer, perhaps some jobs saved?

  2. JM Ivler

    ” Both chains are victims of Obama’s economy ”

    Alas, the economy has actually gotten BETTER since 2009. Is it booming? No. Is it better? Yes.

    Most of us can follow the simple economics of taking a surplus and making it into a deficit (Bush 2000-2008). Most of us can follow the economics of “all gain, no pain” that led to the Great Recession. A few of us can follow the economics of a tax policy that benefits the wealthy with great rewards and punishes the 90% that are NOT wealthy. A even smaller number of us understand the damage of income inequality and how it destroys a country. A very fewer number of us can explain the difference between the Chicago School of Economics and Keynesian Economics. Which might explain why “Both chains are victims of Obama’s economy” sounds nice and sells nice to the masses, but is NOT reality.

    So, as much as people want to place the blame for this somewhere, the fact is that Fresh and Easy opened it’s first US store on November 1, 2007, just as the economy was in the beginning of tanking thanks to Bush-Cheney. (Q: When did the Great Recession begin? A: December 2007, according to the National Bureau of Economic Research, a private, nonprofit research group.) and blaming Obama fro not cleaning up the mess fast enough doesn’t work very well (see note).

    [note: A dollar spent on stimulus has value based on what that dollar generates. The chart at http://voices.washingtonpost.com/ezra-klein/assets_c/2010/06/bang_for_the_buck_for_various_stimulus_methods_%28LARGE%29-21273.html shows the value of the dollar in terms of it's stimulative effect on the economy. The six items at the top are where the GOP insists that stimulus dollars be spent. The six on the bottom are where progressives want to spend the same money. If the Bush tax cuts are dropped and 100% of that income is then spent on the bottom six items, the economy would rebound immediately. The difference is a .25 change to the GDP with the GOP choices (see chart) and 1.5 using the progressive options (see chart). And that's the difference between a very slow and painful recovery and a fast one. - Please note that I am NOT taking political sides, but talking just about the bang for the buck between the two different option sets based on public pronouncements by the conservatives and the progressives, and which will provide the bigger bang for the buck. Also, it is important to remember that 30% of the original stimulus was traded away as tax breaks instead of infrastructure investments to Susan Collins (R-Maine) for her vote in the Senate, imagine how much better the stimulus would have worked if that was at 1.65 rather than 0.20.]

  3. [...] We reported a few weeks ago that Tesco, a British Corporation, was considering closing their Fresh and Easy grocery stores.  I was personally aghast at that report as I love shopping at Fresh and Easy – so good news came today as Tesco announced, in an email to Fresh and Easy customers, that they are not in fact going to close their stores.  They did however admit that they are considering their options. [...]