Study: Tesco must be responsible

By: QUINN EASTMAN - Staff Writer | Thursday, August 2, 2007 10:33 PM PDT ∞

NORTH COUNTY ---- As it hits the beach in Southern California this fall, British retail giant Tesco needs to live up to expectations it has created that it will be socially and environmentally responsible, according to a report issued Thursday from Occidental College in Los Angeles.

Tesco is poised to open dozens of Fresh & Easy neighborhood markets in Southern California by Christmas, including sites in Fallbrook, Vista and Escondido.

Smaller than regular supermarkets at around 10,000 square feet, Fresh & Easy stores will feature fresh produce and prepared foods, the company says.

In its public announcements, Fresh & Easy has emphasized its attention to the Spanish-speaking market; its pledge to avoid tobacco products, trans fats and artificial flavors; and the solar panel system it installed on its distribution center in Riverside County.

Thursday's report from Occidental College's Urban and Environmental Policy Institute highlights a different set of issues: Tesco's reputation in the United Kingdom and other countries for its Wal-Mart-scale "hypermarkets," hardball competition and a mixed record on dealing with its employees.

The world's third-largest food retailer behind Wal-Mart and France's Carrefour, Tesco is entering the American market for the first time and plans to open more than 100 stores in California, Arizona and Nevada.

Fresh & Easy's stores will have a "huge impact" on the region's grocery businesses, said one of the report's authors, Amanda Shaffer, in a telephone conference Thursday.

The report notes that Fresh & Easy could present sharp competition to local independent markets in Escondido, such as Mi Pueblo and Major Market.

It recommends that Tesco commit to having a certain number of stores in underserved low-income areas and having their buildings certified as environmentally friendly by the U.S. Green Building Council.

The report authors said they also urge the company to hire full-time employees at a living wage, establish links with local farmers and sit down with unions such as the United Food and Commercial Workers.

Tesco executives have said that they have not decided whether to accept union-organized employees.

"Our employees ---- all of whom we intend will work more than 20 hours per week ---- will be compensated well above the minimum wage and receive a competitive rewards package that includes health care, a quarterly bonus and other benefits," said Fresh & Easy Chief Executive Officer Tim Mason in a statement issued Thursday.

"We will seek every opportunity to site stores in many types of neighborhoods, including those underserved by traditional supermarkets," Mason said.

The report on Tesco is available at www.uepi.oxy.edu.

Contact staff writer Quinn Eastman at (760) 740-5412 or qeastman@nctimes.com.

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