A competitive market forces Fresh & Easy to cut underperforming locations.
Fresh & Easy has announced that it will be closing 14 of its stores. These closures are being made as a part of a downsizing effort as the company attempts to compete in a challenging industry. Recent initiatives have been made to help drive sales across the chain, but the 14 stores that are to be closed were not performing to the company standard, and in such a competitive market, time and money cannot be wasted on underperforming stores.
According to a report by The Orange County Register, the locations that will be closing include stores in Arizona, Orange County, San Diego, Los Angeles and Las Vegas. This relatively small number of stores to be closed follows the closure of 55 locations in three states earlier this year. At the time of the initial 55 closures, the company claimed that downsizing would help the company redeploy capital into growth and development. After the 14 newest closures, Fresh & Easy will have fewer than 100 store locations in Arizona, California and Nevada.
In the past few years, ownership of the chain has changed hands. James Keyes, former 7-Eleven executive, now runs the chain, and he has a plan to turn the chain around. Keyes’ plan requires stores to focus on convenience, low prices, hot and ready meals and fresher products. Another key turnaround strategy was reintroducing the Wild Oats organic brand to store shelves.