Retail News Breaks Archives
A&P to close 25 stores
August 16th, 2010
MONTVALE, N.J. – A&P has announced plans to close 25 stores in five states. Affected outlets include those that are underperforming, as well as locations near other company stores, and those facing real estate and cost issues.
"As part of our turnaround, we have initiated a detailed review of our store footprint and have decided to close these 25 locations," said A&P president and chief executive officer Sam Martin. "While this was a very difficult decision that will unfortunately impact some of our customers, partners, communities and employees, these actions are absolutely necessary to strengthen A&P's operating foundation and improve our performance going forward."
The store closures are expected to be completed in the company's fiscal third quarter. The move is part of turnaround plan, announced in late July, that is meant to generate sustained profitability and cash flow, drive sales growth, improve margins and strengthen the company's foundation for the long term.
"We are moving forward aggressively to advance our turnaround and position A&P for a strong future," Martin said. "Even as we reduce our store base and drive efficiencies across our company, A&P continues to remodel stores and take other important steps to enhance our customer's experience across our store formats. To this end, we are set to re-open two newly remodeled stores in the coming month."
A&P has also launched two private label lines focused on everyday-low price products. The Food Basics line will include food products ranging from cereal to produce and meat, while the Home Basics line will comprise such nonfoods products as paper towels, baby wipes and laundry detergent.
The products launched first in the retailer's Pathmark stores, and will roll out to its Food Basics stores in the next few months.