A&P to Flip More Stores to Pathmark Brand

6/8/2009 - Citing "format optimization" as a top priority, A&P intends to strategically flip more of its outlets to the Pathmark brand. The goal is to improve overall sales and earnings performance by aligning its stores to the banner that is most appropriate for its surrounding demographic.

Without stating how many stores are slated for the re-branding plan, Eric Claus, CEO of A&P, suggested that a large number of A&P stores that had yet to be renovated to the "fresh" format would be candidates for a switch to Pathmark. Other locations may be transitioned to the Food Basics brand. Supermarket News, citing an unnamed source, estimated that as many as three dozen A&P stores "would be better served under a different banner." The same source indicated that the chain could benefit from closing a handful of stores in locations where A&P and Pathmark compete with one another.

The A&P strategy, though planned from the outset of its takeover of Pathmark 15 months ago, has received renewed emphasis in light of Pathmark's poor financial performance in recent months.