EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Percentage of Sales in Exclusive Brands: 18% (E)
Principal Business: A&P began in 1863 as a New York City mail order house, trading in tea
imports. Over the decades, this pioneering retailer helped to define, innovate, and set the standards
in retail marketing and merchandising, especially with respect to its own private label products.
A&P became the largest food retailer and manufacturer in the world (around 1920) and reach a
peak level of some 15,709 stores in 1930. Its fate since then has been downhill as the result of
mismanagement, growing competition, government restrictions, and other factors. For fiscal 2011,
the company overall operated 393 stores in seven states & DC along the East Coast. This covers
10 store banners: A&P, Super Fresh, Waldbaum’s, Super Foodmart, Food Basics, The Food
Emporium, Best Cellars, Pathmark, and Pathmark Save-A-Center.
EB Identities: America’s Choice (Gold/Reserve/Healthy Kids), Food Basics, Food Emporium,
Food Emporium Trading Company, Greenway (healthy, organic, eco-friendly), Hartford Reserve
(specialty premium deli, bakery, groceries), Home Basics, Live Better Wellness (OTC &
pharmacy items), Master Choice, Mid-Atlantic Country Farms, Pathmark, Preferred Pet, Sierra
Range (frozen premium meats), Via Roma (Italian-style foods), Woodson & James.
EB skus: 4,000+(E)
Profile: On Dec. 12, 2010, A&P filed for Chapter 11 bankruptcy protection, as it carried $1.4
billion in debt. Its fiscal 2011 results showed a net loss of $598.6 million (versus the year earlier
loss of $876.5 million). In the current period, the company opened one new store. Some 32 stores
were closed in six states with plans to sell another 25 stores. Since filing for bankruptcy, A&P
secured $800 million in debtor-in-possession financing through JPMorgan Chase & Co. to use for
its turnaround plan. The company has also brought in new management and at the end of 2011,
signed collective bargaining agreement with its unions, allowing the company to rebuild and
emerge from bankruptcy.
UPDATE: In March 2012, the company emerged from bankruptcy protection—just in time to
celebrate a subdued 150th anniversary in 2012 with some 300+ stores under its banners. As a
private company, A&P has begun tightening its belt, reportedly announcing in September 2012 its
intention to sell its 16 The Food Emporium stores in Manhattan (NY) and close a Pathmark
supermarket in that area. In the following month, A&P reportedly laid off some 40 employees at
its headquarters. While fiscal 2012 sales are private, it’s diminishing size continues: From fiscal
2010 sales of $8.8 billion, to fiscal 2011 sales of $8.1 billion, and very likely now with fiscal sales
for 2012 estimated at close to $7 billion. A&P’s stock crested in 1989 at $64 a share; at the time of
its bankruptcy shares dipped below $1. Recently, top management has been shuffled. On its
website, A&P recently reported its total store count at about 315 stores--determined by counting
reported store locations for its five chain in six states plus DC: 110 Pathmarks (New York, New
Jersey, Pennsylvania), 105 A&P stores (New York, Connecticut, New Jersey), 47 Waldbaums
(New York), 25 Superfresh supermarkets (Delaware, Maryland, New Jersey, Pennsylvania,
Washington DC), 16 The Food Emporiums (Manhattan, NY). In addition, A&P also owns about
18 Best Cellars small liquor stores. In January 2013, this retailer introduced its makeover seafood
department, under the logo, “Great Atlantic Seafood Market.”
Procurement Contacts: Christine Oliver, Sr. Director Own Brands; Jayne Caffrey, Dir. of Strategic
Sourcing; Beth Curran, Manager of Own Brands; Ajay Kanwar, VP Marketing; Mike Mills,
Senior VP Merchandising