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Verisae Inc.

Fresh & Easy case study

ow to manage energy and equipment maintenance
for competitive advantage in retail – discover how the world's third-biggest retailer kicks the competition in terms of operating efficiency

This detailed case study will inspire money-saving, profit-enhancing improvements for retailers in:

• Grocery retail
• Convenience stores
• Mass merchandising
• Drugstore chains
• Big-box specialty
• Home furnishings
• Retail chains
• Department stores

You'll find plenty of practical, actionable ideas to put to work in any of these key roles:

• EVP, SVP, VP or director of operations
• SVP, VP or director or manager of facilities
• SVP, VP, director or manager of facility engineering
• SVP or VP real estate
•SVP or VP finance
•SVP, VP, director or manager of energy management

The plan was to start an innovative new U.S. grocery chain from scratch. This was a bold idea, like entering a lion's den. The United States has the world's largest and most competitive retail food market.

Tesco, the world's third biggest retailer, was invading the home turf of Walmart, the world's top retailer and arguably Tesco's most formidable grocery competitor. Tesco's Fresh & Easy Neighborhood Markets would aim to offer singular value. Stores would be designed to generate more revenue at lower cost than any competitor.

Architects and merchants worked to make the stores unusually appealing to shoppers. A team of operations people focused on how to run them at very low cost. They sought new levels of labor productivity, efficiency and flexibility.

This is the story of what they've done and how they do it today.

You'll discover, among other things:

• How Fresh & Easy achieves energy efficiency 30% better than that of their peers in the U.S. grocery industry, despite using more refrigeration per square foot of store space and despite operating in the hottest climate zones
• How the retailer achieves unprecedented coordination between the functions of energy management and facility and equipment maintenance
• How the grocer achieves a 10% leakage rate for refrigerant gases, when the U.S. average for grocery retailers is closer to 25%
• Why Fresh & Easy challenges up to 30% of invoices from external service providers
• Three ways the company saves hundreds of thousands of dollars a year by slashing the cost of maintenance calls
• How Fresh & Easy eliminates 100% of utility billing errors

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