Niccollai Decries Poor A&P Financial Performance

Speaking to members at the January 12 General Membership Meeting in Little Falls, NJ, UFCW Local 464A President, John T. Niccollai declared his disappointment with the 3rd quarter and year-to date financial performance of A&P. The Great Atlantic and Pacific Tea Co. released its financial results late Tuesday afternoon. “The company lost $502.4 million from continuing operations during the fiscal 2009 3rd quarter. I simply cannot comprehend this number. In just 3 months the company lost all the money that investors like Yucaipa had put in plus hundreds of millions more.” Niccollai said.

The financial performance in other categories was equally poor. Comparable store sales fell by 5.8%. Adjusted income, which was a positive $17.4 million a year ago, fell to a loss of $20.1 million, and year to date overall sales fell to $6.8 billion from $7.2 billion a year earlier. “A&P is being dragged down by its mis-management of Pathmark. I am very troubled. I have not been a great fan of A&P’s leadership, goals or plans. I was against their buying of Pathmark. Those of us who worked at Pathmark in its heyday remember a great company. But that heyday is gone and it cannot be revived. To try to build A&P on the Pathmark brand is a mistake. A better choice would be to assimilate Pathmark into the A&P banners”

Niccollai sounded a staunch tone indicating that he expected A&P to seek concessions and give backs from Local 464A members. “We must and will maintain a level playing field among all of the employers with whom we hold a union contract. We cannot favor one company such as A&P over the others. If we do then we will see all that we have worked to achieve unravel before our eyes. I will not let that happen. We will do everything possible to protect our contracts and protect our jobs.”