Why TESCO failed the USA
#46
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Joined: Jan 2017
Posts: 2,900
Re: Why TESCO failed the USA
What was Tesco's point of differentiation with the other supermarkets in the US?
I never went into a US-one.
The ones I go to in Europe, all seem wholly interchangeable with American or Australian chain supermarkets, or Carrefour in the Middle East.
Daily vs weekly shopper seems weird, it's all the same stuff.
The US grocery scene is cut-throat and customers get very loyal, and the market can fragment along regional lines with local quirks (Florida, for instance, is famously difficult for companies of all sorts to crack - Publix is one of the few that have done it, and they've become something of a state icon). If they were undercapitalised and tried to go national right away it would have been tough going.
I never went into a US-one.
The ones I go to in Europe, all seem wholly interchangeable with American or Australian chain supermarkets, or Carrefour in the Middle East.
Daily vs weekly shopper seems weird, it's all the same stuff.
The US grocery scene is cut-throat and customers get very loyal, and the market can fragment along regional lines with local quirks (Florida, for instance, is famously difficult for companies of all sorts to crack - Publix is one of the few that have done it, and they've become something of a state icon). If they were undercapitalised and tried to go national right away it would have been tough going.
#47
Re: Why TESCO failed the USA
The US is quite slow on these aspects. They still haven’t made a dollar coin stick in a practical sense, many employees still want to be tipped so they have a chance of earning more, old folks (and some young) love their check books, the self checkouts are popular but a certain contingent won’t allow the end of manned checkouts, and it’s tough to even get a PIN to go with your chip card. There seems to be a widely held belief that you need human interaction, whether annoying or not, to establish and maintain some kind of trust. Cash ain’t going anywhere anytime soon and the ability to keep employees at minimum wage is strangely valued. I still occasionally run into large grocery stores in the Midwest where you stand next to the cashier without a belt to put your purchases on - super awkward arrangement.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
#48
Account Closed
Joined: Jan 2006
Posts: 0
Re: Why TESCO failed the USA
The US is quite slow on these aspects. They still haven’t made a dollar coin stick in a practical sense, many employees still want to be tipped so they have a chance of earning more, old folks (and some young) love their check books, the self checkouts are popular but a certain contingent won’t allow the end of manned checkouts, and it’s tough to even get a PIN to go with your chip card. There seems to be a widely held belief that you need human interaction, whether annoying or not, to establish and maintain some kind of trust. Cash ain’t going anywhere anytime soon and the ability to keep employees at minimum wage is strangely valued. I still occasionally run into large grocery stores in the Midwest where you stand next to the cashier without a belt to put your purchases on - super awkward arrangement.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
They did get the $1 dollar coin to work, and eventually brought the $2 coin, and of course was able to successfully remove the penny from use.
Tipping isn't going anywhere though, even in a couple years when servers will be making the same min wage as any other min wage worker, I bet tipping will still persist.
There is controversy around self check out's, they exist but if stores try to push them too hard they get negative press, so cashiers still exist in most stores.
We don't have an issue with chip and pin though
Cash is still popular with low income folks that can't get credit or bank accounts.
Cheques, don't know any store that takes them, but they are still popular when it comes to paying rent.
#49
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Joined: Feb 2017
Location: Newnan, GA
Posts: 802
Re: Why TESCO failed the USA
The US is quite slow on these aspects. They still haven’t made a dollar coin stick in a practical sense, many employees still want to be tipped so they have a chance of earning more, old folks (and some young) love their check books, the self checkouts are popular but a certain contingent won’t allow the end of manned checkouts, and it’s tough to even get a PIN to go with your chip card. There seems to be a widely held belief that you need human interaction, whether annoying or not, to establish and maintain some kind of trust. Cash ain’t going anywhere anytime soon and the ability to keep employees at minimum wage is strangely valued. I still occasionally run into large grocery stores in the Midwest where you stand next to the cashier without a belt to put your purchases on - super awkward arrangement.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
OTOH, I spent a week in Sweden recently, and it would have been hard to use cash even if I had some.
It was fun going back at Christmas and having to present a Chip enabled card and having to advise the member of staff that it will print out a receipt for me to sign. Some had never seen it before!
#50
Re: Why TESCO failed the USA
#51
Account Closed
Joined: Jan 2006
Posts: 0
Re: Why TESCO failed the USA
I hate the zip code thing the gas stations use in the US, few in my experience will take a Canadian card because of that, some can be tricked but they are getting smarter...lol
#52
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Why TESCO failed the USA
It's a joke anyway. The vast majority of purchasers are using one of a few local zip codes, so it's hardly difficult for a thief to guess.
#53
Re: Why TESCO failed the USA
Too many sweeping generalizations?
I think Tesco suffered from bad timing re the economy, and also launched the concept just a few years too early and/or bailed too quickly. …. I thought it was well know that Tesco's pockets just weren't deep enough to support the chain in the US until it got established, and needed capital elsewhere in the group, so they bailed out.
As I see it, nobody ever accused Walgreens, 7 Eleven, or Dollar General of having stores that were too small, so I think that argument is bunk!
Was I supposed to be a "daily shopper" in the UK? I think I shop more often here than I did in the UK, dropping in on a Kroger-owned grocery several times a week, but almost always as I am passing in that direction for other reason, or on the way home, rather than as a planned shopping trip. FWIW despite always driving to the grocery, I have retained my British habit of almost always shopping with a hand basket, which limits how much I can buy. …. I doubt I choose to shop with a trolley more than 3-5 times a year.
I think Tesco suffered from bad timing re the economy, and also launched the concept just a few years too early and/or bailed too quickly. …. I thought it was well know that Tesco's pockets just weren't deep enough to support the chain in the US until it got established, and needed capital elsewhere in the group, so they bailed out.
As I see it, nobody ever accused Walgreens, 7 Eleven, or Dollar General of having stores that were too small, so I think that argument is bunk!
Was I supposed to be a "daily shopper" in the UK? I think I shop more often here than I did in the UK, dropping in on a Kroger-owned grocery several times a week, but almost always as I am passing in that direction for other reason, or on the way home, rather than as a planned shopping trip. FWIW despite always driving to the grocery, I have retained my British habit of almost always shopping with a hand basket, which limits how much I can buy. …. I doubt I choose to shop with a trolley more than 3-5 times a year.
But that is how most produce is sold at Kroger. Potatoes, onions, carrots, apples, mushrooms, are things we buy often and are always in plastic bags, or other containers. Spring Onions and broccoli are bundled, and lettuces and cucumbers are wrapped in plastic even though sold individually!
We could buy loose apples and potatoes, but the apples sold individually are ridiculously large, and mushrooms sold loose are more expensive per lb than the 1lb punnet.
We could buy loose apples and potatoes, but the apples sold individually are ridiculously large, and mushrooms sold loose are more expensive per lb than the 1lb punnet.
While some select items are wrapped or pre-bagged in say Albertsons or Ralphs, they are not pre-bagged/packaged on the level Fresh & Easy was.
https://www.livingafrugallife.com/wp...hs-produce.jpg
http://news.growideashere.com/images...349-pm.bmp.jpg
https://farm4.staticflickr.com/3808/...2ef92a86_b.jpg
first 2 links above is an example of a Ralphs & Albertsons store.
Fresh & Easy store that was in California, almost everything is packaged or pre-bagged.
https://secure.i.telegraph.co.uk/mul...s_2537631k.jpg
https://www.livingafrugallife.com/wp...hs-produce.jpg
http://news.growideashere.com/images...349-pm.bmp.jpg
https://farm4.staticflickr.com/3808/...2ef92a86_b.jpg
first 2 links above is an example of a Ralphs & Albertsons store.
Fresh & Easy store that was in California, almost everything is packaged or pre-bagged.
https://secure.i.telegraph.co.uk/mul...s_2537631k.jpg
The fresh and easy near me was NEVER that busy!!!
I'd say F&E was really just a smaller scale grocery store. I went there for one thing only - shepherds pie! They were also pioneering 'self checkout only' ; lots of stores are now doing self-checkout as an alternative, but F&E gave you no choice.
I like the analogy with TJ's - best analogy so far. For some reason, I always feel happy to be in TJs even though I don't go very often, but I never got that feeling in the F&E's. TJ's has a 'hippie' / organic / quality vibe, while F&E had an 'austere' / cheap / utilitarian vibe.
Last edited by Steerpike; Apr 1st 2019 at 7:02 am.
#54
Re: Why TESCO failed the USA
According to Brown, as many as 50 percent of black and Latino households in San Francisco go without a bank account, although since the city’s most recent study dates to 2005 it’s hard to judge who might be affected by the rise in popularity of cashless stores today.
#55
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Joined: Jan 2006
Posts: 0
Re: Why TESCO failed the USA
Surely the UK vs US fridge size (and to a lesser extent) overall kitchen size must have a bearing on this? In the UK you are somewhat forced to buy smaller batches more frequently. I've been staying with my brother and mum over in UK several times over the past 12 months and I'm always shocked at how small their fridges are. It's a good job people in UK don't like cold beverages 'cos there's no room to put anything in the fridge! My beverage of choice these days is sparkling water, and I like it 'fridge-cold' but without ice; no chance of that in UK. Today I was at Sprouts and bought 3 1-gallon cartons of milk, because the particular 'type' I like (organic, lactose free, 2%) is not always in stock so I buy it when I see it. I was at Costco the other day and picked up a couple of racks of lamb, even though I have no specific plan to eat them ... because I know I can just toss them in the cavernous fridge and let them sit for a while (they are vacuum packed and last several weeks).
In AZ and CA, I don't think 'any' of the produce is available in plastic bags; it's all loose and you pick just what you want. I'm sure there are some 'bagged' stuff, but it's certainly not the most predominant by any means. Actually, the cauliflower is always in a bag ...
I LOVE pictures of produce like that Food Porn ....
The fresh and easy near me was NEVER that busy!!!
The 7-Eleven's around me in CA are dodgy places, mainly selling lots of beer and milk. If they do sell produce, I wouldn't want to eat it! They also seem to pride themselves on selling rather hideous looking hot dogs and such. Walgreens out west are a strange phenomenon indeed - they are popping up everywhere, in high-end areas, and I can't figure out why. They are basically a pharmacy, with lots of cosmetics and row-upon-row of medications, etc, and then aisles of weird stuff like pool toys and beach goods. A few sell produce but again, I wouldn't even think of buying any there. Dollar General - don't think we have those.
I'd say F&E was really just a smaller scale grocery store. I went there for one thing only - shepherds pie! They were also pioneering 'self checkout only' ; lots of stores are now doing self-checkout as an alternative, but F&E gave you no choice.
I like the analogy with TJ's - best analogy so far. For some reason, I always feel happy to be in TJs even though I don't go very often, but I never got that feeling in the F&E's. TJ's has a 'hippie' / organic / quality vibe, while F&E had an 'austere' / cheap / utilitarian vibe.
In AZ and CA, I don't think 'any' of the produce is available in plastic bags; it's all loose and you pick just what you want. I'm sure there are some 'bagged' stuff, but it's certainly not the most predominant by any means. Actually, the cauliflower is always in a bag ...
I LOVE pictures of produce like that Food Porn ....
The fresh and easy near me was NEVER that busy!!!
The 7-Eleven's around me in CA are dodgy places, mainly selling lots of beer and milk. If they do sell produce, I wouldn't want to eat it! They also seem to pride themselves on selling rather hideous looking hot dogs and such. Walgreens out west are a strange phenomenon indeed - they are popping up everywhere, in high-end areas, and I can't figure out why. They are basically a pharmacy, with lots of cosmetics and row-upon-row of medications, etc, and then aisles of weird stuff like pool toys and beach goods. A few sell produce but again, I wouldn't even think of buying any there. Dollar General - don't think we have those.
I'd say F&E was really just a smaller scale grocery store. I went there for one thing only - shepherds pie! They were also pioneering 'self checkout only' ; lots of stores are now doing self-checkout as an alternative, but F&E gave you no choice.
I like the analogy with TJ's - best analogy so far. For some reason, I always feel happy to be in TJs even though I don't go very often, but I never got that feeling in the F&E's. TJ's has a 'hippie' / organic / quality vibe, while F&E had an 'austere' / cheap / utilitarian vibe.
I can't say for the rest of the US, but So. California people have always for the most part been loyal to whatever grocery chain they prefer making it hard for new arrivals to break into the market.
That location is now a Walgreens and its busy and seems to do well.
Last edited by scrubbedexpat091; Apr 1st 2019 at 4:33 pm.