U.K. Grocer Plans South Central Site

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The U.K.’s biggest grocer apparently sees profits where few large domestic supermarket chains have dared to tread: South Central Los Angeles.


Tesco plc, as part of an ambitious roll out of 100 Fresh & Easy Neighborhood Markets in the next few months, is planning to open a store on the corner of Adams Boulevard and Central Avenue in the heart of the Latino and African American community.


“They’re opening stores in areas that other grocers, historically, have thumbed their noses at,” said Jack Kyser, the chief economist at the Los Angeles Economic Development Corp. “Everyone is very intrigued to find out what their exact plan is and what the stores are going to look like.”


Tesco has been mum about specific store locations, and a company spokesman declined comment on the South Central location. But news of the store was recently disclosed by Councilwoman Jan Perry at an event hosted by the Los Angeles Current Affairs Forum, a local group that organizes speakers to talk about city affairs.


In an interview with the Business Journal, Perry said she worked with Tesco to place the grocer in a new adaptive reuse project that will feature 100 units of affordable housing above the store.


“I was contacted by a representative of Tesco and felt the idea would work perfectly in my district. Tesco is very enthusiastic and very calculated,” Perry said. “It’s funny that it took a grocer from another continent to recognize the opportunity that is available here.”


Better known about the British chain, which operates 2,800 stores in 12 countries, is its approach. The Fresh & Easy concept has been developed specifically for the U.S. market.


The “eco-friendly” stores are being built to minimize energy consumption and will be about 10,000 square feet, about the size of an average Trader Joe’s. They will focus on selling fresh, organic products at lower prices than traditional supermarkets. The company is building a massive 820,000-square-foot distribution center in Riverside that will service the Southern California, Phoenix and Las Vegas markets.

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