EL SEGUNDO, Calif. -- Tesco said Wachovia Bank will be the exclusive ATM provider to Fresh & Easy Neighborhood Market when the company's first stores debut in Southern California, Las Vegas and Phoenix this fall.
London-based Tesco, the world's third-largest retailer, announced in 2006 it would make its first foray into the U.S. grocery market with a new chain of smaller, convenience-like neighborhood-based and consumer-friendly stores on the West Coast.
The partnership between Wachovia and Fresh & Easy Neighborhood Market [image-nocss] brings together two companies with an emerging presence in California. Wachovia Corp. said it plans to build approximately 40-50 branches a year over the next five years there.
The companies said they are also a natural fit in another important areaenvironmental stewardship. Wachovia recently announced a "green" financial center design in accordance with Leadership in Energy & Environmental Design (LEED) certification standards. The company will begin opening its green financial centers in Southern California later this year, and by the end of 2008 all new Wachovia branches will be built using LEED standards.
Fresh & Easy Neighborhood Market is equally committed to the environment, the El Segundo, Calf.-based retailer said. "Fresh & Easy believes part of being a good neighbor is being a responsible steward of the environment," said Simon Uwins, Fresh & Easy Neighborhood Market chief marketing officer. "Underscoring that commitment, we will install an innovative 500,000-sq.-ft. foot solar roof at our distribution center, at a cost of $13 million. We believe it will be the largest roof-mounted solar installation in California and possibly the world. In addition to our solar roof, we will minimize waste by recycling or reusing all our shipping material. Our freezer cabinets will use LED rather than florescent lighting, saving 50%, and we have modified our fridges to cut energy use by 10%.
Fresh & Easy is already being criticized, however, even before it opens the first doors, said a report by The Arizona Republic. A report released earlier this month by Occidental College in Los Angeles said Tesco has a mixed labor record and questions its stated allegiances to serving low-income communities and reducing greenhouse gases.
We found that Tesco doesn't always live up to its promises of social responsibility, said Amanda Shaffer, chief researcher at Occidental's Urban and Environmental Police Institute, in a conference call with journalists cited by the newspaper.
Tesco promotes its Fresh & Easy markets as environmentally conscious, offering organic produce. It said it makes an effort to locate in poor neighborhoods without fresh-food options. But the 72-page report recounts international workplace abuses in Tesco's supply chain and said only 10 of its first 98 U.S. stores are slated for high-poverty areas.
Robert Gottlieb, director of the Urban & Environmental Policy Institute, said the report gives context for Tesco's move into the United States and should be used by communities to hold the retailer accountable. For example, the report calls on Tesco to establish community committees and use meat from local farmers.
Tesco has made strong claims and set important targets in its approach to social responsibility, Gottlieb said. However, Tesco's performance demonstrates that a number of its practices either contradict or fall short of those claims.
Gottlieb and analysts said Wal-Mart and Tesco are similar businesses, both in size, resistance to unionization and pressure on suppliers to drive down price. Wal-Mart Stores Inc. reported $315 billion in sales last year to remain the world's largest retailer. Tesco PLC, with $80 billion in annual sales, is behind Wal-Mart and France's Carrefour SA.
Gottlieb said he wants Tesco to create positive opportunities in the retail food industry.
Tesco has come to rival Wal-Mart as a sophisticated and successful corporation with shrewd marketing capability, the report said. Like Wal-Mart, Tesco's role as a giant, global corporation has a significant impact on the health, working conditions, fresh food access, environmental quality and other important needs of a community.
In a statement, Fresh & Easy's Mason said, "We've not had the opportunity to review the UEPI report in any detail, however, we welcome the opportunity to prove to our customers and constituents in the U.S. that we stand by our promise to deliver fresh, quality, affordable foods in all communities, to be a good steward of the environment and to be a great place to work. Our employeesall of whom we intend will work more than 20 hours per weekwill be compensated well above the minimum wage and receive a competitive rewards package that includes health care, a quarterly bonus and other benefits. And, we will seek every opportunity to site stores in many types of neighborhoods, including those underserved by traditional supermarkets."
Click here to view the Occidental College report.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.