British retail giant Tesco has begun selling Private Brand products into its stores using the Fresh & Easy brand. Approximately 10 items have been introduced including: chopped casserole vegetables, vegetable roasting trays and prepared carrots.
A Tesco spokeswoman said the grocer is likely to roll out the products, developed in the UK under the specifications and branding developed by Fresh & Easy in the US, within the fresh produce department. The products are not sold in Fresh & Easy stores in the US
According to the retailer, “Fresh & Easy is built around great products and utilizes the best of our product expertise. The products are free from additives; preservatives, hormones and trans-fats, and customer satisfaction scores for them in the US are among the highest in the group. We are bringing a bit of all of that knowledge and experience back to our home market.”
This move comes a little more than a year after Tesco began using the Fresh & Easy’s “Goodness” private brand on more than 70 items including home meal solutions and snacks. At the time I wrote this:
“If Tesco is able to utilize Fresh & Easy as a incubator and test market for Private Brand and retail innovation they have the potential of creating a competitive advantage that has value above and beyond the sales and margin of the stores. And ironically it puts a prominent English retailer looking back across the pond for innovation.”