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Market may brave more losses

Fresh & Easy, despite its projected second-year slide, plans to open a store at Verdugo and Olive avenues.

October 10, 2009|By Zain Shauk

BURBANK — Fresh & Easy Neighborhood Markets will go forward with plans to open a store here, the company confirmed Wednesday, a day after it announced dismal financial projections.

The British-owned chain, which initially raised eyebrows by promoting healthy, prepared foods at locations in fast-food-rich areas like Compton and South Los Angeles, said Tuesday that it would likely lose about $259 million after its second year of operations, matching its first-year losses.

That announcement, however, will do nothing to stop expansion for the 130-store chain, which plans to open one location a week through the end of the year, spokesman Brendan Wonnacott said.

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“We’re still coming, and we’re definitely excited to serve Burbank,” Wonnacott said.

The store plans to move into the former home of CVS/Pharmacy near the corner of Verdugo and Olive avenues.

CVS moved out of a building there in 2007 and into a space one block away that was previously occupied by a Vons, leaving room for a new grocery store to break into the area, said Michael Forbes, a planner for the city.

“I think it would be great for that neighborhood,” Forbes said of the planned Fresh & Easy. “I know the residents in that neighborhood have told us since the Vons moved out they don’t have a market that’s available in that area.”

Fresh & Easy stores market low-cost, healthy options, with an emphasis on grab-and-go meals, Wonnacott said.

“One of the things that we are very focused on is making fresh, high-quality food accessible for every neighborhood,” he said.

The company plans to develop a 10,000-square-foot sales space, much smaller than the 27,000-square-foot Henry’s Farmers Market, a competitor that opened last week. Fresh & Easy does have fewer choices for consumers than larger supermarkets, but has most items a shopper would want for their homes, and often for low prices, Wonnacott said.

Among the company’s top-selling items are family-pack prepared meals meant to feed four people at $8, he said.

The prepared foods are attractive not only because of their price, but because of their ingredients, he said.

“The bottom line is they only include ingredients with names that you can pronounce,” he said.

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