For example, if a firm is able to identify certain customers that are unprofitable, it may drop those customers and lose market share while improving profitability.Fresh & Easy, the grocery chain that has struggled for years in Southern California, said Wednesday that it was closing its business — but holding out hope for a buyer.Sales figures do not necessarily indicate how a firm is performing relative to its competitors.Rather, changes in sales simply may reflect changes in the market size or changes in economic conditions.Market share often is associated with profitability and thus many firms seek to increase their sales relative to competitors.Here are some specific reasons that a firm may seek to increase its market share: In some cases it may be advantageous to decrease market share.The firm's performance relative to competitors can be measured by the proportion of the market that the firm is able to capture.
Under Burkle, the chain tried to find new ways to woo shoppers.
The chain was British supermarket giant Tesco's first venture in the U. From its start, Tesco trumpeted Fresh & Easy as something of a European version of Trader Joe's, offering groceries with an emphasis on fresh products, including ready-to-eat meals. Tesco also sunk millions into an 850,000-square-foot distribution center in Riverside County, which put enormous pressure on the chain to swiftly expand.