Recently I received a email via this blog from Ross Patrick, a creative director involved in the branding of Tesco’s foray into America, Fresh & Easy. Ross asked if I was planning on doing anything on Fresh & Easy Private Brand. The answer is quite simple, of course Fresh & Easy is on my list to write about, but typically I my stories come from one of two places: a in store personal experience, I have walked the store and experienced the products, or commentary on a newsworthy event, new products launched, a new ad campaign, shifts in strategy or shifts in personnel. Ross was kind enough to send me a deck on the work he was involved in and it is intriguing.
The Private Brand strategy is distinctly different from the three-tier structure Tesco has so successfully employed across the pond. They chose to eliminate the tiers and use Fresh & Easy as the Private Brand across the store. This is a familiar strategy to US shoppers; Costco has grown its Kirkland brand in the same way.
The designs are clean and simple and with some products leaning towards European Private brand design, while others are almost stark in their simplicity
According to the Supermarket News, in an article by Elliot Zwiebach: Own-brand products account for slightly more than half of the 3,500 SKUs and more than 70% of sales at the 78 Fresh & Easy stores Tesco has opened in California, Arizona and Nevada since last November. The company said that more than 80% of its customers cite the private-label lines as one of the main reasons they shop at the stores.
Fresh & Easy’s commitment to Private Brand penetration is truly exciting, I will reserve my opinion until I can walk a store and experience the products at shelve, and more importantly taste them. Thanks Ross for the info and I look forward to seeing your work in person.