Why Tesco Failed In The United States
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- เผยแพร่เมื่อ 8 ก.ค. 2024
- Tesco is the biggest retailer in the United Kingdom. It also has a strong international presence, with more than 6,500 stores worldwide. But there is one country where the British retailer failed to take off: the United States.
Tesco announced its entry into the U.S. market in 2006. At the time, Tesco was the third-biggest retailer on the planet, according to Euromonitor International.
The company went by the banner name "Fresh & Easy," but the brand didn't click with American consumers. Tesco ultimately exited the U.S. market in 2013 when it sold off its remaining stores to Yucaipa Companies.
Watch this video to find out what went so wrong with Tesco in the United States.
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Why Tesco Failed In The United States
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Anyone else from Ireland or Britain shocked that Tesco actually went abroad?
cameron burke shocked no. Surprised no . Fapping yes
Not really. When foreigners come over to us, they always shop in Tesco. Plus, if it works for Walmart owning ASDA, then why not try it the other way
Yeah
@@ethancarberry-holt3011 Walmart owning asda hasn't seemed to change it all that much. All the big asda shops have basically remained the same as they ever were. It sounds like Walmart had a way better understanding of UK shops than tesco did of US shops. Tesco are for smaller city shops in the UK in my experience, then ASDA only have the massive 24h super-supermarkets that sell everything under the sun, have pharmacies in them, places to get glasses and eye tests etc. Seems like the American way already, you go to asda for big weekly shops. Tesco have big shops like that too but without checking I'd guess the majority of their shops are the little ones in city centres and villages. Sainsburys is also in that market, I don't think I've ever seen a giant sainsburys like the big asda shops. Then you have Marks and Spenders and Waitrose if you're posh and wanna spend 50% more on everything, get truffle oil and rare kinds of cheese.
Yes, they have bombed in Thailand and India too!
I had absolutely no idea there ever were Tesco stores opened in the US
i thought they kept to our island
I didint even know what tesco was
@@BlockedUser1 I saw a Tesco in China so I knew they were international but not in the USA
steph soppanish I thought Americans didn’t know what Tesco was
@@sunsetvlogs5500 - Yes, I do. 😎
When an American says “Tesco’s” it just doesn’t sound right
tesla is better hehe
MJ studios you're not funny
@@foure2833 im a vietcong
MJ studios Was the Vietcong thing supposed to be funny too?😂
Never heard of this brand till today
"They put them on the wrong side of the road"
Well considering they drive on the other side of the road, you can blame the researchers.
yes you can. they had one job.. to research the market they wanted to break into. Understanding cultural differences, like knowing which way people commute during their work week, is basic. There are soooo many stories where poor market research and not understanding the audience they want to attract is the ultimate downfall for all these companies who try to expand abroad.
Shauday Smith Whoosh 😂
@@ShaudaySmith Thats what he said?
@Nestor Jr. Abalos no,no we don't. Just because one group of super market researchers failed doesn't mean we are all colonizers.
🤣🤣🤣
Their small store format and offerings were designed for the urban consumer, but they opened in suburbs instead. Wrong move.
Yup the ironic thing is that they have in the UK a store format that pretty much matches what their US stores should have been, it's called Tesco Metro and you basically find them where you would find Starbucks and Subway galore such as major transit hubs, city centres with a ton of office space etc.
Seraphina S yes however they do have to open something like that in very urban markets, which I feel should’ve been the the plan as well for Fresh & Easy
@@seraphina985 yea but then Tesco Express is a similar format and lives in residential areas and does well too. I think they just didn't appreciate how far people would have to travel to go to their pokey stores.
@@MikeRees Yeah people are much more spread out in the US than we are here in the UK.
And the American consumer is used to colossal stores rather than the type we have here.
Our Fresh and Easy turned into a Crunch Fitness. @Crunchtime Eats
Y'all Americans have no idea how many students lives depended on the Tesco £3 meal deal in the UK lmao
cyka chicken fajita wrap Diet Coke and a bag of walkers cheese and onion was my life haha
This I think is the problem though they should have used the same location logic they use for their Tesco Express stores that tend to gravitate to places like university campuses etc. I think that the Tesco Metro format might have worked too they are focused on dense urban areas and live on the same sort of foot traffic looking for quick food and drink that companies like starbucks, subway etc live on.
@@XbillabongjohnX nah it was all about the BLT sandwich with ready salted walkers and Diet coke Lol
cyka y’all?
cyka chicken bacon and stuffing sarnie a walkers sensations and a water
I can’t believe they didn’t consider that the west coast of America is so heavily car based where their model was foot traffic based. Whhhyy did they not start on the east coast, where cities developed before the USA car based city planning model did
Exactly. No commuter in LA is gonna stop in every day. How they thought "this works great in downtown London, commuters will love this-& no way are we using a nearly century old, well trusted, easily googled brand name" is beyond me. Takes a special kind of stupid to try this.
not even an american but when they said the stores were in the west coast I was like whyyyyyy would you do something like that
@@rekietabeatslc9980 Yep, lack of basic prior market research. At least Tesco didn't do as badly as Bunnings when they bought Homebase, trashed it and had to sell it for £1.
Absolutely. They should have started in urban areas in some of the eastern states. They probably would have succeeded.
The east coast has wawa, which is about the same thing
I feel bad for all the Americans living without Tesco, Cadbury chocolate and roundabouts.
Blue Hyper i actually found a roundabout in america once it was in florida somewhere
Roundabout definitely exist in America h fk there one right down the street from my school
I know! I’m happy to see more roundabouts in America because they’re much safer and flow much better than generic intersections.
Cadbury Choclate is in the US?
Yeah
As someone who has lived in the UK and the US. I feel Tesco Express could have been good if it was near college campuses
Makeda Phillips it honestly could’ve. I was in High School when they opened; after school we would all go to Fresh and Easy to get food.
Surprised Walmart hasn't done something similar?
Or NYC instead of the West Coast.
It'll work in Manhattan too with many young professionals and public transportation. They picked the areas where people must drive to go places, and who would drive to a small store to pick up daily produce?
I Agree.
Tesco could've done well maybe in the NYC area, or college campuses.
With the 3 pound meal deal
@@Captin_Wong and a 5$ foot long.
They just had no will to do it.
this would work well in NYC.
because youre every person ever huh @@MustaphaRashiduddin-zx7rn
Tesco would have *dominated* NYC if they went east
Yep
@@bh2o Well, obviously THAT wouldn't work.
@@bh2o I’m not entirely sure what Tescos stores you’ve been in but they are really not that bad.
L
Here's an idea: try this again, but keep the tesco name since "fresh and easy" might put too much emphasis on vegetables, open them in high foot traffic areas, and sell "traditional British" stuff exclusively there such as cadbury's, irn bru, jaffa cakes, custard creams etc. as a gimmick. I reckon it could take off.
If that's the angle, better to go all in and name it "Admiral Tuffington's British Food Emporium and Teahouse".
most of those things are already sold in the us mostly in more well known supermarkets
not cadburys. its been taken over by an american company and is now rubbish.
Is it just me that wonder why Tesco did not target a city like NY?! I think their business model would work there.
Exactly thought the same
I agree
Joe H lol
Or Miami, FL Wawa is doing well here it's always busy.
Joe H lol we use inches too 😂 find me a Brit who doesn’t understand that
How I would've done it:
- Call it Tesco Grocery
- Put it near college campuses or dense residential areas, places where people are more likely to shop daily
I think you’re right about the location types they should’ve targeted. As a college student without a car, this grocery store model works for me. I go to the store a few times per week because I generally buy food as needed, and I occasionally buy prepackaged meals. From the video it seemed like they were trying to compete with the typical American grocery store rather than market themselves as a convenience store of decent quality groceries.
@@seraphina985 Seems like they tried to develop a US specific strategy when really should have stuck with what they knew and tried to find a way to make that strategy work in the US.
de132 I live in a place where grocery stores are super far way so places like that would also be a good place
Great idea. Also so many places in rural or Middle America that are burdened by having only two real choices: Walmart and the dollar store. Target doesn't always do well since it's pricy. Come back! Won't hurt.
The two cities they focused on, Phoenix and Las Vegas, just are not good locations for stores like this.
I think they should’ve kept the Tesco branding, Americans love British things... In the UK Tesco Extra stores are massive, and aimed at weekly or fortnightly shoppers. Tesco Metro, and Tesco Express are smaller for daily shoppers.
Yes it should have kept British branding. It would have done well in San Francisco, New York, Austin... I believe I saw a store in Phoenix once and thought to myself, is this a low end market. Bad branding. Bad timing
Yes, you are right the Tesco name might have helped. It is to bad that Tesco did not consider that.
They used Tesco Express models on many of the suburban areas in Los Angeles. It just doesn't resonate. That Tesco express model might work in NYC or SF where it is more dense and daily pick me up of heated prepared meal might make sense. Not in the suburbs of LA.
@@JamieStLouis-tu9ml I’m American. Tesco sounds like a gas station to me, especially because Texas is known as our oil state.
No lol you couldn’t be more wrong
“Bucking ham palace” I’m done
CT83 probably the same though when you morons designed your language.
@@carl5381 we pronounce it *bucking umn palace* but it seen has buckingham palace
White house literally sounds it was named by white supremacists
Which it was
@@kevinkevin6445 Yeah we are trying to end racism so we are planning to paint it black or rainbow
That particular pronunciation, um instead of literally saying ham, doesn't exist in American English.
Did NBC just call Tesco a London landmark?
No, it didn't. Did you watch the video?
Tesco is a British landmark.... Cracked me up
I use the tesco express by my house to let people know where i live... its as close to a land mark as we have here :D
Mean using them as land-marking for tell people where you are. Just like a 7-11.
Looks like you didn’t watch the videoZ
In the U.K. We don't shop daily we shop weekly we just eat less🤣
i don't know about that one
@@uchster9 as in the eating less or the shopping daily?
Ikr 😂
I shop every few days. Don't know anyone who goes daily!
@@bulman07 Americans tend to shop once a week to once every few weeks. The only ones that go every few days are very near a grocery store that it's easy to pop in and out of. Most Americans don't fit that description.
Tesco entered an oversaturated, hyper-competitive market. It was like dropping a new fish into a crowded fish tank.
Tesco:
"Fresh and Easy"
Muricans:
"Eeeeew vegetables"
Lmao
@Matthew Rodriguez 'Our food isn't liked by everyone' - It's a pretty stupid comment considering the UK doesn't really have it's own style of food, it's mostly derived from everyone we colonised which was about a third of the world....
@Matthew Rodriguez That's where you're wrong. We colonised huge amounts of the world so long ago that the types of food that were ate back then are rarely/not ate today.
Matthew Rodriguez it’s hard for America to admit that all their food is fatty,greasy and packed with artificial flavourings... no wonder you don’t like our food, you’ve never got to try real food
Billy Thompson very true
They don’t even have those godly meal deals in the US. Absolute batty boys
Mighty Marouane Fellaini stop 😂😂😂😂
Lmaooo
LOL
Mighty Marouane Fellaini Casual homophobia 👏
@@nativenewlondoner it is called a joke my guy
US grocery is a tough business. Nevermind foreign companies, even US ones fail.
John S to be honest I think it done better if they would have choose their locations wisely in Maryland they took that idea and embedded into some of the Super markets that show it could have worked
Tough isn't really the right word. American grocery shoppers are particularly stubborn about habits and to shift to more European-style shopping would require a big change in consumer habits. Tesco were banking on people being willing to swap, and they weren't.
Also, let's be real; the idea that people wouldn't be willing to *cross the road* to get to a shop only really resonates with people who are *extremely* American.
@@louisholden5127 Americans are impulsive consumers simply put Tesco failed to realize that the American consumer isn't the same as the British consumer. Look at where Wal-Mart's are placed of the freeways. Aldis succeeded where Tesco failed by targeting the low end of the marked and succeeded
@@louisholden5127 "Across the road" makes it sound like indeed, it's just that, across the road. A store will not fail from something that trivial. They mentioned these stores were placed on opposite ends of freeway and interstate exits from where traffic was most re-entering cities. So, I'm passing this store on my way to work in the morning, getting on the interstate, but it's further out of my way on my way home. I just worked an 8+ hour shift, I'm tired, and gas is effing expensive. I want the most convenient option available to me if I absolutely must pick up something from the store on my way home (which, I absolutely hate shopping after work.I have absolutely passed up stores that were not on the same side of my exit or if I'd have to snake through evening traffic to reach them.
They also pointed out that these stores had daily shopping for a consumer in mind. I don't want that. I shop twice a month, maybe three times at the absolute most. I don't want to use gas going back and forth to the store so much. I also don't want bulk items as I can't afford them. If I'm buying cucumbers for a salad, I want just one, not a duo pack. Thus, this store would not appeal to me.
And as they opened these stores in the west coast, many on that end are becoming more conscious of the environment. Plastic bags to carry a plethora of plastic wrapped food is the antithesis of the environmental-friendly mindset of the west of the country. Someone in this thread mentioned they marketed to a niche community and most definitely, they did.
John S
Aldi and Trader Joe’s is doing great and they German company
Just saying no one in the uk goes to Tesco everyday the majority of the people do a big shop once a week or month
odd most people I know go 2 to 3 times a week
Yes, this American analysis of how British people shop is completely flawed. Tesco Metros are effectively convenience stores not supermarkets and I bet if you excluded them, then they’d see that most Brits tend to do a weekly shop.
@@pnealuk to be fair most Tesco in the UK are big ones for cities and large towns making them a lot easier for fitting people in and doing a single shop per week, however the smaller size stores more like that of a coop don't sit as well for such a thing unless in an exceptionally rural area, meaning a sainsburys would be better size for a weekly shop than the small Tesco stores. Then keep in mind American stores are huge the small stores wouldn't have a chance in the US. The larger of Tesco extras would probably last but once more the selection may not fit American lifestyles as naturally as they integrated into the UK off of local produce and fresh items.
@@OnlyGrafting The point I was making is that the video makes a series of assumptions about why the management of Tesco made their decisions and what may have influenced them which are clearly and demonstrably false, which fundamentally calls into question the remainder of their analysis. We clearly both agree that Tesco runs a multi-level provision her in the UK from Tesco metros, in dense urban areas; to Tescos that tend to cater to the suburbs and have much more variety; to Tesco Extra, which is more akin to the stores they opened in the States. This approach recognises the established and mature nature of the groceries market in the UK. The only solid observation from my perspective is that they made a reasonable investment on a pre-financial crash understanding of the US market in the States they opened in. It was also telling that the film failed to tie their decision to withdraw from the US market in 2013 to a developing internal crisis within Tesco that would explode in 2014 when it was revealed four directors had conspired to overstate Tesco's revenues by up to £2bn leading to their eventual arrest, trail and acquittal, whilst the company was forced to pay millions in fines to the Serious Fraud Office to avoid prosecution.
I go to the supermarket like3-4 times a week to buy a drink when I’m out or something
Americans didn't deserve the almighty tesco anyway.
The meal deals are too good for them
Indeed
SireNoName they would need 30 meal deals to cover their lunch alone
@@ProbablyNL i don't doubt that
SireNoName tell me about it meal deals are the bomb
They should have tied to establish themselves in the dense northeast cites were people don't drive as much and are used to smaller stores.
Yes--Fresh and Easy's whole thing was quick and easy meals that you could grab. Not much use in a city spread so far apart, where most people drive everywhere. I could see it working in a dense metropolitan area for sure. But just where they put it didn't work out at all.
That's exactly what I was thinking while watching this. Nobody wants to drive to a grocery store daily
Yes exactly! I wish we had something like this here in the section of Providence RI I live in. What a shame.
Agreed! Aldi has done really well in the East coast with smaller stores.
good point
Personally I wouldn't of changed the brand name. If it's working in a same language country, it makes no sense to change it.
Jacob Scarr yes. Very true
They probably tested it on some focus groups and got a crap response
Yeah, as an American I can definitely say that I have heard of Tesco through TV, internet, and other people... but I had never heard of Fresh and Easy until I watched this video. It also gives off this kind of hipster organic food store vibe... I know they didn't test the stores here, but in the Midwest people kind of regard those as overpriced stores for younger folks, while the older generations prefer a standard grocery store setup that has maybe a section within the store dedicated to that. Like a little deli area within a Price Chopper or a Kroger. I can see the 'Fresh and Easy' brand working maybe more as part of a gas station or something, where the majority of people would be on-the-go by default, though.
Tesco name works in any language really.
@Joe H Target sounds like a shooting range. Walmart sounds like an Australian animal.
It failed coz they didn’t buy the meal deals I bet
It didn't even come to my area
Do CNBC think that London is the only place in the UK or something? Why were they going on about London when Tesco is around the entire country.
Because, in fairness, Tesco started in London and it's the economic and political heart of the country.
Also it's the most famous reference point that most Americans will have heard of. If you say Birmingham or Manchester you'll get blank looks.
Peter Humfrey Yh, in US people hear Manchester and think of the New Hampshire city
Because foreign news companies don't maintain offices in every city in other countries. They probably just have an office in London as Britain's capital, so that is where their staff can most easily get the footage.
@@WanderingWriter91 If you say Birmingham most Americans think of BirmingHam, Alabama.
TH-cam: "Hey wanna watch this Tesco video"
Me: "No, Thanks!"
TH-cam: "We'll see about that"
Instead of refreshing recommendations keep scrolling down since they don't repeat
Just click the dots and then "not interested"
@@Journey_Awaits They do repeat even if you keep scrolling. But TH-cam knows me so well nowadays, that I wanna see them all. I never get to see all the videos I want lately :-D
maybe youtube got paid to push its tesco documentaries
@@trumpeytoes7450 😁😂😂😂
That fresh & easy logo gives me a pricey vibe
Anything fresh and green sounds pricey
I wasn't sure if I was the only one! I swear the green logo gave off a pricey vibe so I never bothered going in one. Plus I never saw any advertising on the store so it gave me no reason to even go to one.
Fresh & Easy sounded like it was extra pricey because something made it easier for you, fresh must mean organic or something, and the same color as money?
this is why i never bothered going into one, first time seeing the layout through this video. funny.
Funny you bring this up!! I live in Arizona and saw more than a handful of these in my area. I didn’t take time to realize why I haven’t seen any in awhile but I very distinctly remember that I NEVER even had the desire to shop here because I got a costly vibe from their branding! Similar to that of say Whole Foods or sprouts, and I noticed the size of I am going to pay more why not got to a place with more options like sprouts.
Had no idea they were actually low cost
@@NickGster1 Perfect anecdote. And this is why you speak with consumers and run test panels before you just jump into it (yes, Philip DeFranco, I'm borrowing from you). Usually, unfortunately, stores with green lettering marketing "fresh" items end up being a euphamism for "expensive". Not having any advertising outside the building on what kind of store they really are is also a massive opportunity missed.
6:30 The Tesco marketing researchers really messed up by overlooking the sides of the road Americans drive on vs British drivers. Outbound for a Brit could mean inbound for Americans. Big mistake😩
🤦🏾♀️
The most basic thing that you'd expect someone paid five or six figures would notice
I remember working in UK in the 90’s and shoppng at Tesco. Their value offering attracted many buyers on a budget. When they opened here in Poland, they had nothing differentiating them from Polish German French or Dutch stores of similar size. Since then more than half of these companies have sold their stores to competitors. The French proved most resilient in the large store format and ze Germans and Portuguese rock the discount scene. The rise if the latter certainly contributed to Tesco’s demise in Poland.
Tesco is shrinking here in Czech Republic, German owned supermarkets like Kaufland and Lidl are doing better. I liked Tesco in Brno a few years ago when they sold some British foods, like teabags etc. Now it's just selling crap and it's not cheap.
"ready-to-go food"?? We just call them ready meals
maisie sturgeon they meant thinks that you can grab and eat straight away like their meal deals
That just sounds worst
yeah the Americans just don't like simple xD
It rolls off your tongue easy than ready meals
@@Taehyunshour I'm sorry, but does it really??
This would've worked in DC, NYC, Philly and Boston.
Especially in heavily populated, gentrified urban neighborhoods. I'm thinking of NYC areas such as Manhattan and areas in Brooklyn close to Manhattan like Brooklyn Heights and Carroll Gardens. In the Boston area, the South End, Back Bay and Charlestown, would be ideal.
I think it would have worked here in Chicago, too (reminds me a bit of the Walmart Market in my neighborhood that is a hit). They should have rolled this out in Urban America.
Carrie Harlow I agree, especially on college campuses on the east coast such as NYU, temple, UPenn and Drexel in Philly and NYC.
Yeah, anywhere people are on the move en masse is a place where people need that convenience. Not a place where everyone drives regardless of the traffic situation. Even in gas stations or college campuses throughout the country - places people need/expect a convenience store experience - that could work.
So y'all just gonna diss Chicago like that ?? Its cool
We'd prefer to stay underrated
Where I live in Ireland we have "the big Tesco" and just the normal Tesco.
Same
ha same
I live in England we have normal Tesco and Tesco local
We also have co op local
Haha yeah or just for any shop like we had an asda superstore and we always said we were popping out to the big asda ect
@@miakiikazu Asda doesn't even have a small version
"when you think about London what do you think of?"
Me: fish and chips.
😂 London is definitely not famous for fish n chips that the coast lines that are famous for
What? No! London is definitely NOT known for its fish and chips
Go to a seaside town for the best fish and chips
Fish and chips is so overrated by people outside of the UK. People here don't actually eat it that much at all, and honestly it's not even that good. Sunday roast, English breakfast or tikka curry on the other hand...
Honestly if we ever go for a chippie not all of us likes fish and chips version
I love how a lot of us in this comment section aren't business experts. Yet even we could of told Tesco for FREE that it makes more sense to open in the East in places like New York.
True, but... at the time having seen Sainsbury and M&S fail, and just like many Brit pop stars who try and make it in the US, it looked a very ambitious move by Tesco.
RavB40 I live in DC area. I feel like it would’ve been a good idea in this area. I live in a measure it it’s very walkable. We have a whole foods, Safeway, giant, Trader Joe’s. All within a 7 minute walk at my home.
Yeah it’s almost like TH-cam commenters oversimplify things in order to convince themselves they know more than a professional marketing team
Barry Shitpeas Nobody’s trying to convince themselves of anything; it’s pure conjecture, nothing more.
What tense is "of told"?
Wonder why they didn't choose to go with the 'Tesco' name in the US.
Reporter said that they wanted to go with a name which Americans would click with instantly. Hence the reason.
@@dhavalchheda1626 Fresh & Easy is a generic name. It doesn't "click" with anyone.
1) Tesco sounds Spanish 2) sounds like a gas station chain.
This is why it's a case study for us
They should’ve went with Tesco, Fresh and Easy sounds like a bakery 🧁. I don’t think grocery when i hear “Fresh & Easy”.
The German brothers are doing pretty well, where Tesco failed.
Because tesco is Britain’s pride and joy, it wouldn’t work in America because it’s just wrong
Bad timing bro
No not really bro
It's Sam Hussey 2005
Come on brah
@@Victoria-sm1sj nah even Walmart’s better lol
But we don't shop daily. We shop weekly. So one of the points repeated in this is wrong...
depends on how close to the supermarket you are the nearest to me is about 100 yards, away oh you do see those that shop like they were feeding The Five Thousand with a bill to match as well.
Yeah exactly. Tesco Metro / express is for everyday things - like if you want a pizza and a 4 pack. The larger stores are for weekly shops.
No one does a weekly shop in Tesco express.
he didnt say "Ben Hardy shops daily", they were generalising. me and many other people i know do just do a daily shop rather than a weekly one.
Master Beethoven of course not. Not with those prices... 🤢
I'm in Camden and shop daily, but that's probably because I don't have a car, and Lidl is just downstairs
When I lived in the UK, I loved Tesco. I feel they would have been owning NYC if they tried the east coast first.
Mostvdefinately who the hell suggested Las Vegas do they look the people in office jobs in a dense city?
@unknownerrxr nah, well not where I live. My whole family is working class with bot much extra money but we still shop at Tesco primarily. Only at aldi when we've had a hard month but I understand where you are coming from
@unknownerrxr Waitrose and Marks are in a class above Tesco. Tesco and Morrison's are decent but not as cheap as Aldi and Lidl which are definitely the most affordable.
@unknownerrxr Waitrose and Marks are in a class above Tesco. Tesco and Morrison's are decent but not as cheap as Aldi and Lidl which are definitely the most affordable.
Saqib Zaman they were being greedy. They saw that people paid more for groceries in the desert (because there are no local farms i assume) so they wanted to make tons of cash out there.
Lmao Americans be like: bucking HAM Palace
bukinem palis
They also say burmingHAM
@@epicrobloxgaymer69 fohd feehstah
Buck ing um
Isn't that how its pronounced?
It’s also funny to me that Fresh & Easy aka Tesco actually has a similar layout to Trader Joe’s which is now incredibly more successful than ever before. If only they had rebranded and stuck around.
I used to shop at Fresh and Easy in Southern California and absolutely loved it. Their prepared meals were so convenient. I was so sad when they went out of business.
Yup, they were my favorite grocery store. I was so sad to see them go.
I agree, I loved Fresh and Easy. The quality was also great
Try Aldi
@@LifeOfTheParty323 I was about to mention that. They open one up close to my home. Love it. It filled a void, although they are a bit different.
In the UK Tesco is horrible. Their fruits and veg last like 2 days, Asda (Walmart) and Costco have branded things much cheaper than them and their meat seems fake (they also sold horse meat once lol). The only way they are still around is because they have small express stores.
The model might have worked in New York City, and other eastern cities like Boston, but not in California or Arizona.
Yes, I was confused when they said they were targeting areas with more foot traffic and then opened in the west😕
Not really, New York City has Duane Reade, and California is super oversaturated with Rite Aid, CVS, and Walgreens like you wouldn’t even believe.
Shop Rite?
Yeah but we also have stop & shop and costco so it would’ve failed eventually
Patrick Miller everywhere in America is oversaturated rated with CVS Walgreens and rite aids
FRESH AND EASY WAS TESCO?!! I had one right by my house years ago and I absolutely loved it 😩 comeback
I swear to god if one more person says bucking-HAM I’m going to flip
Bucking ham..,
Bucking ham
Baron Will exactly
Fuckingham
@@maddoxharrison4692 It's not nice to swear to God.
Sounds like a failure of management, planning, research and marketing at every level. Lmao.
Why are you laughing your a*s off
Should have opened in New York.
They failed also in Poland, my country. Why? I think bad locations, small scale, buildings to big and crazy price policy. Price too high for some products, for other definitely too low. Everything in cut throat competition environment. I suppose a lot of food was wasting. A pity because I like Tesco.
Just like when Walmart pulled out of Germany they didn't do research
We were on a school trip yo Krakow and drove past the local Tesco on the way to the salt mines. The whole bus collectively went "wtf there's a Tesco here"
Emma Jenkins Hahahah, I went on a trip to China and saw a Tesco’s and I honestly was so confused. They didn’t have any meal deals though :(
Emma Jenkins I went to Tesco on a school trip once
We had tesco in Romania also...
I lived in Nevada during the Fresh and Easy stores expansion. I loved the stores and their products. It was the only place I shopped. As a single person, I would shop daily or at least 4 times a week. The prepared meals were excellent.
Financial Crisis
There, saved you 10 minutes
Not accurate. It's more correct to say cause of loss is bad understanding of market.
@@annoyingguyoninternet1631 still didn't need to take 10 minutes to explain
Epicentre the video was interesting so you didn’t save me anything
Thank you
I think it was primarily location. Starting West Coast was a terrible call. They could've survived in the East Coast. The financial crisis didn't help but it wasn't the main reason.
Its not a bad video but you are just wrong when it comes to uk shopping habits. Most people do a weekly shop!
Nothing like getting your massive bag of monster munch for the week
@@te1327 nah walkers fam or wheat crunchies
yeah but just go to asda for something like that, you wont find me doing a weekly shop in tesco
dotdot dot 🤤
Who has time for a daily shop lol
Going just to California to ask how people shopped was their first mistake.
If only they use the original name "Tesco" it might have been different story
Or at least would have used a color more like Co-Ops color.
This green reminds me of vegetables, not of other food. It just doesn‘t give the feeling you are entering a grocery store.
I loved shopping at Tesco’s in the UK. I’d gladly shop there for British goods if they came to the US just for the memories.
Having worked for 2 UK based companies, they tend to do better business in the northeast US then on the west coast.
Thatguy101987 yep, as someone who’s been to both coasts of the US, I can see many more interpersonal parallels between the east coast (especially NYC and LDN) rather than the west coast (ie LA>LDN)
Works for me, I'd love to have one of those weird nyc penthouses where the window cleaner can see me naked whilst i'm having a bath.
Small format grocery stores are a bad fit for Phoenix and Las Vegas, two of the most car dependent cities in the US. You want everything under one roof there, because you HAVE to drive, HAVE to stock up, and it's a pain to do that more than once a week or so. Even if you live close, you STILL drive because it's 110 degrees outside.
Put that format in walkable places with decent transport, it may have worked.
yo i was just thinking that this store would work better on the upper east coast then anywhere else
Cause they new england
Tescos ready meals are the back-bone of Britain
true True
Sainsbury's at my uni so I beg to differ
It’s a solid, high in salt, saturates and sugar backbone, but a backbone nonetheless.
Duh what are British meals
That explains a lot...
When I was studying abroad in the UK I loved Tesco
they’re missing out on those meal deals
They did research by living with American families. But somehow they didn't realize that Americans mostly food-shop weekly instead of daily?
Exactly, who has time to buy groceries everyday anyways?
@@voidhidra1792 I've never been to England. But my friend said that their foods are more organic. So don't last as long. They wind up shopping more frequently than in US.
shaggyaxe makes sense, I guess we’ve gotten used to giving up quality for the sake of convenience.
@@voidhidra1792 In the cities in the UK we often to buy food coming home from work. If you go to a major railway terminal in London you'll see a small Waitrose, M&S Foodhall, Tesco etc, store in the station or just outside. People grab food for dinner for that night maybe with a bottle of wine or something and then jump on the train home, our stations have become mini shopping centres. We do have big supermarket branches, lots of them, but people are buying less at a time than before. Asda (owned by Walmart) and Tesco both have huge branches but they aren't as popular as they expected and have stopped opening new ones. I think we just started realising it's just less wasteful and we don't have to plan food in advance.
Void Hidra I basically shop for a meal, lots of small shops nearby, I go in and buy something to cook, lasts like 2 meals and then I go shop again
It’s mad because Tesco dominates Walmart in the uk
Harray are there even Walmart’s here?
Home turf.
@your converse highs nope, asda is now owned by sainsburys, as of 2018
Davos Kallow hasn’t been authorised by the CMA/ they aren’t going to be ‘owned’ by Sainsbury’s, they’re going to merge with probable equal equity
your converse highs Walmart in the UK is called Asda it’s the same company
Yes but have the Americans try Greg’s.
Greggs
It’s Gregory’s in the South
@@nialls1048 of course it bloody is
Mr Scruton oh sweet Jesus
Bloody “Gregory’s”
I feel like a victim to a war crime
Wait there’s no greggs in America ?
I live in Phoenix. When I was younger I’d sometimes go to the Fresh and Easy stores. It was a much different experience than Kroger(Fry’s in Arizona)
It sounds like they should have tried this in New York/New England area. This is a good idea in their right area. Tescos sounds a bit like Trader Joes but maybe cheaper.
Pretty much what it was, haha. Lots of ready-to-go meals too. Less emphasis on organic like Trader Joe's, but you still have that vibe. Just cheaper.
angellover02171 I think I would have work in Maryland
Trader Joe’s is Aldi, Aldi is cheaper than Tescos
tdreamgmail Trader Joe’s generic products are much better than ones at Aldi. Plus it’s got a kitschy old timey, island appeal.
Tescos itself is just like a Superwalmart, I am so confused why they had these weird little stores in places people didn't want them.
I'm honestly more suprised that tesco went abroad.
They were everywhere at one point. Even China had them. Far less successful than Carrefour though.
Same with me when I found out Asda wasn't a british company
there was a Tesco warehouse shop thing in Pedreguer Spain on the N332.
Tesco is actually doing pretty well abroad. No signs of bankruptcy in CZ.
We hv tons of tesco in malaysia
I had no idea Fresh and Easy was Tesco’s doing. I loved that damn store 😭
Tesco’s has recently pulled out of Poland
Thats Brexit bro
Really? I've been in a Tesco in Poland in 2019 once. And the shelves were half empty 🤣😅.
"i'm very happy we're exceeding budget" lmao what?
But are you making a profit?
**guy sweats**
"We are-- hah I didn't say that, I said we are exceeding our budget (Never talk about this again)"
A quick verbal trick to try and con americans. It worked too, the reporter didn't say anything lul.
@@NYR2K8 But many companies expect to make a loss, so to say if you're on budget means you are making a profit is a stupid assumption by the reporter.
@@OldUKAds but he's saying they've exceeded their budget. In other words over budget and spent too much money. He said it with a smile and positive body language to make it seem like a good thing. Presumably the interview was during tough times for the store given the context. That's why I said it was a verbal trick and still think it is.
"They were on the wrong side of the road"😂 🤣
Vedant kale wrong side of road I'm not sure wrong state is more accurate
more like wrong side of the country lol those stores work fine by me
‘Wrong side of the tracks’
All you had to do was follow the dam train CJ!!!
Not as being on the WROONG SIDE OF THE RIVVVVEEEEER!
😂
Fresh and Easy was SUCH a good grocery store, everything was really well priced and private label brands were amazing quality.
in mexico there are lots of small grocery stores because people shop daily there, too. here people have less time
I do like Tesco, but can understand why it failed in the US.
AppleUK 123 that’s because you just watched the video... it explained it 😂😂😂
@@ulysseshenderson8717 😂😂😂 👍 True!
Cus I m Mercian and I drive my truck once a week to get 25 litter moutin dew and coke and chips and dips and fat and lard and McDonalds any thing red or yellow and is over 80% fat is good for Mercian joe go trump. (JOKE)
Walmart came clutch and hit the game shot. Walmart is untouchable
@@jacobandferb Racism? Last time I checked Americans aren't a race?
Her ”your making a profit”
him “I didn’t say that, I said we’re exceeding our budget”
Wait, you mean negative numbers are bad?
I cringed lol
During this time that Tesco were building their US market which they went all in with, the rest of the stores (and I can only speak for the UK) in England all fell into disrepair. I recall the stores all looking shabby, and the product ranges being uninspired. The shops themselves looked untidy and unkept. When the US failed, they refocused their attention back into the UK and spent a lot of money refurnishing the entire stores. Whilst good, dont let Tesco get away with the fact that had their US venture been successful they would never had returned to make the British stores worthwhile. Hope that made some sense.
I miss Fresh & Easy. I live in SoCal, and I remember it being across the street from my high school. I wish we had this again, because I hate buying bulk. :(
Understand your market and the local culture before you even try to compete. It really is that simple.
Well they did send 40 market researchers and anthropologists to do just that but evidently they just went on a holiday instead.
I shop for food daily being young with no kids but I don’t shop for ready to eat meals, I want to prepare my good food and make it last
Wellll Target did fail in the UK soooooo
@@Michiganian8 ready meals arent all bad their 3 pound meal deal were made on the same day or day before and their quite healthy a tuna salad fruit bag and a smoothie
That's the moral of every single of CNBC's "Why this company failed abroad"
In the US brand-name recognition is big. I think they should’ve stuck with something like, “Fresh and Easy; groceries by Tesco” that way you’re telling the US customer 2 things: 1) The brand Tesco is important (and if people knew what Tesco was, they’d know what to expect from F&E) and 2) the store is for groceries.
US customers really didn’t understand what F&E was about when they opened in the US. Also, putting tiny grocery stores in hard to find places didn’t really help their business either.
Very simple, fresh and easy is a subscript or a motto. You just call it Tesco so the sign reads TESCO: Fresh and Easy! Aldi doesn't seem to be doing too badly, they're just a bunch of Trader Joe's stores.
TESCO sounds like a gas station.
@@ginawiggles918 I guess you're thinking of Texaco. There's a few Texaco's around here in the UK and nobody confuses them with Tesco.
@@Thomes-Maisling: YES, that's the one. I don't know if that gas station is around anymore either.
@@ginawiggles918 Don't know about America but there's one about 3 miles away from my place.
I actually remember one of these opening in a nearby city when I was little. I was mind blown how different it felt when I walked in. I was incredibly sad when it was closed down.
This channel is a surprise! Love the infomentary style
My friend who grew up in Malaysia never knew Tesco was an English company.
That's how you know they're successful there. Growing up, I thought Ford was a British car brand.
Im from malaysia. I thought it was from sweden/denmark first
And now do a report how Walmart failed in Germany and lost over a billion trying.
Btw. as a German I only knew the name, but didn't had a clue what they are doing or where they are located.
Third largest retailer... not bad.
iirc, they bought a bunch of Real Superstores. Also, they intended to replicate their US strategy, building Megastores on the greenfield, killing everyone else with volume. But the mayors knew that, so Walmart rarely obtained building permits, thus never be able to scale up the business. .. that's what I heard.
German supermarkets are light years behind British and French ones in terms of quality and store layout. Tegut is the only one who is close on comparison. However what is interesting though is the German discounters are the ones making gains in market share.
@@roccosilverstar, "Geiz ist geil" .. I don't pay for store layout
Walmart wipes their ass with $1B
Wir hatten Walmart?! wann das & wo? 🤨
Thanks for making the video
There were 3 Fresh & Easy stores where I live with a 4th that was getting ready to open. I really enjoyed them. I wish they could have stayed. They had really great products, but yeah, they were small and you could tell they were looking for shoppers who shopped every day.
I feel like Tesco's Fresh express would of been excellent on interstate rest areas since after a long drive, drivers typically prefer healthy meals than junk foods because junk food only makes them more tired
Not a bad idea but Tesco don’t even do that over here in the uk so unlikely it would have ever happened.
Smart comment, truck stops have horrible options for drivers who want healthy and fast options.
C1Ton Soup
Or college towns
C1Ton Soup good idea
Babanla that’s a thing in the uk now where Tesco have their express store formats in university campuses and these are only a hand few.
The way you said Buckingham palace..
..just no. You don't pronounce the ham like the meat.
Neither is there a full stop between 'Bucking' and 'Ham!'
Americans trying to pronounce British cities is always amusing. Like when they call Glasgow "glass cow". I'm sure us British people pronounce American cities in funny ways too.
@@duffman18 Coventry is a good one.. I have a friend who lives there and he says Americans always pronounce it "Coe-ven-trie"
Lots of the British places also have a smaller version in the states because that's where the emigrants went. Norfolk is pronounced Nor - folk there
Benjamin Taylor they are American AND journalists don’t expect any level of intelligence here
Fresh and easy was 🔥🔥🔥 especially the sushi trays 🤤
james sanchez They are amazing
Pure shocked that they put a pic of Lurgan up for the “Ireland” bit, fair play
I wish they still existed. I wish you could get cheap ready to go meals that are healthy, better then fast food at least.
@No Thoughts Barred If your talking about frozen foods sure or deep fried anything but a ready made sandwich or wrap is definitely better than two double cheeseburgers, a Coke and Fries
@Lucky Catnip We have frozen P.F. Changs does that count.
@Lucky Catnip We have sandwiches, wraps, frozen, chilled and do-it-yourself meals which are exactly the same as you described in Australia. A pretty good range of stuff.
@@muffmaster Which part of the US do you live in that this isn't a thing? Everything I saw on the shelves in those stores can be found at Target or Walmart.
I miss it too.
This 10 minute video said the same thing 10 times. Could have made this into a 2 minute clip.
Sprinkled Donut that’s what trump does too. But it works
Gotta get that 10 minute mark somehow.
Yes, it feels like it was written by a high school student trying to reach a word count for their assignment
@@guideronemiguel Doesn't work for the 100,000 or so who use adblock. lul
@@guideronemiguel : Yep.....10 min=dinero
I liked Fresh & Easy when it was around, especially their brand of things like ready to eat meals and snacks. But it didn’t last long in my area because we were hit very hard in the recession so it was just too expensive to regularly shop at.
And the guy was very correct when he said American’s like to be able to touch and smell their produce, and be able to buy whatever amount. Hahaha. I HATED that the produce was packaged like that, it was so annoying, wasteful, and overpriced.
No one
Literally no one
My mum: I’ll just nip down to Tesco’s
"I'll just pop in for a second"
3 hours later:
Anyone keep getting confused with fresh and easy and ASDA?
yep and consider asda is in the Walmart family I'm losing track
asda was more succesful than fresh and easy
ASDA is Walmart, Fresh ‘n’ easy is Tesco
No.
Lol it reminds me of fresh today in ireland. Its like a shop w lots of vegetables and random stuff thats rlly cheap.
They came here too early. They should give it another shot here in the US now. Things might be different this time.
Tesco cant do it now as they screwed up and lost loads of money and they arnt doing that well in the UK any more. They had to lay off loads of staff .my husband was one of the many thousands of team leaders (lower management by another name)that left as they could take a pay off and leave or be demoted but do the same job for a lot less money with out redundancy pay. He had worked for them for 15 years and cut his losses and left. He is now working for Amazon as a manager in the UK and is making as much as a store manager would at Tesco.
And make large stores with brand names. None of that fresh food stuff, we have McDonald's.
Now tesco are cutting the only thing that make them different and special - fresh food counters. Discount stores like Aldi and Lidl don't have them... So why get rid of them it's its your only selling point
Alright guys I just found out about this channel and i am hooked!
Oh wow, I had a Fresh and Easy right next to my neighborhood, I never knew it was a Tesco store!
“To understand why Tesco failed in the US, let’s go back to it’s start”
BS filler content.
They are resorting to typical TH-cam tactics of making a long pointless video just for ad revenue.
5 minuted in and they only just mention the actual question
@@28ebdh3udnav There are no ads placed in the video, their audience is primarily American and needs background info
@@Dim.g0v Yeah because Americans didn't really know of it
Never heard of the company Tesco
Tesco is the place to go its an absolute belter
Go on lad absolute weapon
MRMF1 ᵿ nope Sainsbury’s 😂
MRMF1 ᵿ unless you have a Walmart
Septiccat whats that mate
@@Delete.9 lol
When they opened, I was actually excited, but then went and was so underwhelmed. Now living in London, I still miss US style supermarkets and REALLY miss stores like Target. I can easily see why the UK model wouldn't work in the Suburbs. What would work is to put them in major urban centers like NYC, SF Chicago etc.
Me thinking how it went wrong
"Tesco opened as Fresh 'n Easy"
Ah, there we go
Thank you