Pathmark supermarket to open in Brooklyn... really

Grocery retail cooperative Allegiance Retail Services announced that it plans to open a 49,000 square foot Pathmark supermarket - at the site of a former Pathmark store in Brooklyn, NY - later this month or next. The New Jersey-based cooperative purchased the intellectual property of the Pathmark name and associated marks last year.

Pathmark was a mainstay in the metro New York market for decades until parent company A&P filed for bankruptcy in 2015.

The new store's owner is PSK Supermarkets, which operates about a dozen stores in the New York market, mostly under the Foodtown banner.

A&P sells off intellectual property

The Great Atlantic & Pacific Tea Co., which entered bankruptcy nearly three years ago before closing all of its stores, sold "substantially all of its intellectual property assets," which consist of its store banners and private labels. Hilco Streambank, a company retained by A&P in 2015, announced that it brokered the sale of 23 A&P brand names, including the following:

Supermarket Banners: Pathmark, Super Fresh, A&P, Food Emporium, Waldbaum's, Food Basics, among others

Private Labels: America's Choice, Greenway, Woodson & James, Hartford Reserve, Great Atlantic Seafood Market, among others

According to a Hilco spokesperson, the sale resulted "in a seven-figure overall recovery."

Some of the transactions were disclosed publicly, and they included the $1.75 million sale of Food Emporium IP assets to the Key Food Cooperative, and the $1 million sale of Pathmark IP assets to a unit of Foodtown operator PSK Supermarkets.

A&P, founded in New York City in 1859, was the world's largest retailer by 1930 with nearly $3 billion in annual sales and 16,000 stores.

Asian grocer 99 Ranch opening stores in New Jersey

Asian supermarket 99 Ranch plans to open at least three stores in New Jersey this year, according to published reports. The first store, a 60,000 square foot former Pathmark, opened recently in Edison, NJ, about a mile from an H Mart, which is also an Asian grocery chain. 99 Ranch stores are also slated for Jersey City and Hackensack.

The chain is owned and operated by California-based Tawa Supermarket, Inc. and has 42 additional locations in its home state, Washington, Nevada and Texas.

99 Ranch focuses on products from China, but also includes a broad assortment of foods from other Asian countries including India and the Philippines.

Fresh Grocer opens in Grays Ferry

Fresh Grocer opened its newest store this past Friday in the former Pathmark space in the Grays Ferry section of Philadelphia. The 57,000 square foot store is the sixth Fresh Grocer location in the city.

In addition to its full-service supermarket operation, the company said the store will offer 300 varieties of wine and beer.

Fresh Grocer, part of the Wakefern Cooperative, now has nine stores in Pennsylvania and Delaware.

Acme to open new store in South Philly property formerly occupied by ShopRite

Acme Markets and The Goldenberg Group announced today that the former ShopRite in South Philadelphia's Snyder Plaza Shopping Center would be renovated and opened as a new Acme supermarket in 2017. The Goldenberg Group owns the property.

The 54,415 square foot store is slated to have a beer and wine shop, and a Starbucks café. In addition, the store's exterior will receive an updated façade and new points of entry. Improvements are planned for other parts of the shopping center as well.

Earlier this year ShopRite relocated to a bigger store on Oregon Avenue that was formerly occupied by Pathmark.

ShopRite opens new stores in Philly and Brookhaven, PA

Earlier this month ShopRite opened a 60,000 square foot store in South Philadelphia's Whitman Plaza, replacing an older ShopRite about a mile away. The new store is in a former Pathmark location that Wakefern acquired during A&P's bankruptcy auction last year.

The renovated supermarket includes the standard grocery departments plus an in-store cafe, on-site dietition, and meal planning services for customers. It also offers ShopRite from Home internet shopping with home delivery and store pick-up options.

In August, ShopRite opened in Brookhaven, PA, also in a former Pathmark location. At 63,000 square feet, the store is open 24 hours a day and offers a beer garden as well as grocery delivery services. A Giant supermarket is under construction across the street.

Acme performance improving thanks to new playbook

Prior to Albertsons takeover of Acme in 2013, same-store sales at the one-time Greater Philadelphia market leader were negative in 27 of the previous 28 quarters. Today, thanks in large part to the parent company's "operating playbook," Acme is performing better than it has in years.

According to a Supermarket News story last week, new leadership immediately boosted store standards, customer service and community involvement. In addition, it empowered local buyers to make buying and merchandising decisions, and added "aggressive muscle" to price and promotions.

These efforts paid off quickly. And recently, Acme aggressively pursued stores left vacant by the A&P bankruptcy filing. In all, they bought 73 former A&P, Pathmark and SuperFresh stores for $293 million. The purchase returned Acme to the Northern New Jersey, New York and Connecticut market.

The company's "operating playbook" was applied to the purchased stores, and customers are seeing the results. One Acme shopper told Supermarket News that "customer service is now a major priority, and the store has become the cleanest grocery store I've ever shopped in."

Industry expert Bob Gorland of Matthew P. Casey & Associates believes Acme is a healthier company than it used to be. In addition, he pointed out that they are doing things they weren't doing a few years ago, like remodeling more stores and adding beer cafes.

Brookhaven, PA to welcome ShopRite and Giant in 2016

The shopping center known as 352 Plaza in Brookhaven, PA had two doomed tenants - Pathmark and K-Mart-  but will soon come to life with a Lowe's (under construction) and a planned ShopRite. The grocery store could open by March 2016 and will feature an outdoor cafe, beer sales, and a hot and cold food buffet. It will extend beyond the original Pathmark footprint and into the closed Chinese buffet space.

Across the street, groundbreaking took place last week for The Shoppes at Brookhaven, a development by Retail Sites that will include Giant, LA Fitness, Starbucks, Smashburger, Pet Valu and a PA Wine & Spirits store, among others. The targeted opening date is December 2016.

A&P to put store names up for auction

Now that A&P's bankruptcy proceedings, including the auctions for its remaining stores, are winding down, the company announced that it plans to take bids for its intellectual property, including brand names for its stores and private brands, its slogans and customer data.

Brands up for grabs include A&P, Pathmark, Waldbaum's, Super Fresh, Food Basics and Best Cellars. Bids are due on November 19.

WARN Notices filed for 94 A&P stores in New Jersey

WARN notices were filed with the state of New Jersey for 94 A&P, Superfresh, Pathmark and Food Basics stores that are slated for closure. The Worker Adjustment and Retraining Notification Act (WARN) was enacted in 1988 and requires employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. The notice must be provided to either affected workers or their representatives (e.g., a labor union), and to the appropriate unit of local government.

Here is the list of stores from the New Jersey state website: NJ Department of Labor

A website - apteanotice.com - has been set up by A&P that lists the stores closing and the stores under agreement with Acme, Ahold (Stop & Shop) and Key Foods.

Acme to bid on bankrupt A&P stores; several Pathmarks and Superfresh stores to close immediately

One day after A&P filed for bankruptcy for the second time in five years, Acme announced today that it will bid to acquire 76 A&P, Superfresh and Pathmark stores in Pennsylvania, New Jersey and Delaware.

In a statement by A&P earlier today, the company said it plans to sell 120 stores in total for about $600 million. The food retailer has 296 stores overall, and in its bankruptcy filing it lists assets and liabilities of more than $1 billion each.

Analysts have speculated that Ahold (Giant, Stop & Shop) may bid on certain A&P locations as well.

A report this afternoon by Natalie Kostelni on the Philadelphia Business Journal's website said that A&P has asked a bankruptcy judge "to let it quickly close 25 underperforming stores that have sustained 'significant operating losses.'" A list of stores slated for closure is below.

A story on PhillyVoice.com pointed out that A&P operated more than 15,000 stores early in the 20th century. By 2010, the company was a fraction of its former self and filed for bankruptcy. A couple years later it emerged as a private company after obtaining financing from investors.

Acme is a subsidiary of Albertsons, which acquired Acme in 2013, and the Malvern, PA-based company operates 107 stores.

Stores slated for quick closure:

A&P (2101 Route 35, Holmdel, NJ)
A&P (325 Highway 35 South, Cliffwood, NJ)
Pathmark (1764 Grand Avenue, Baldwin, NY)
Pathmark (115 Belmont Avenue, Belleville, NJ)
Pathmark (450 West Swedesford Road, Berwyn, PA)
Pathmark (2150 Middle Country Road, Centereach, NY)
Pathmark (85 Ackerman Avenue, Clifton, NJ)
Pathmark (895 Paulison Avenue, Clifton, NJ)
Pathmark (50 Racetrack Road & Route 18, East Brunswick, NJ)
Pathmark (561 Route 1, Edison, NJ)
Pathmark (420 McDade Boulevard, Folsom, PA)
Pathmark (651 North Stiles Street, Linden, NJ)
Pathmark (1043 Route 9 North, Old Bridge, NJ)
Pathmark (840 Cottman Avenue, Philadelphia, PA)
Pathmark (85 Franklin Mills Boulevard, Philadelphia, PA)
Pathmark (1256 Indian Head Road, Toms River, NJ)
Pathmark (300 South Best Avenue, Walnutport, PA)
Pathmark (3901 Lancaster Avenue, Wilmington, DE)
Superfresh (1301 Skippack Pike, Center Square, PA)
Superfresh (2105 Philadelphia Pike, Claymont, DE)
Superfresh (863 East Baltimore Pike, Kennett Square, PA)
Superfresh (1851 South Columbus Boulevard, Philadelphia, PA)
Waldbaums (2 Westbury Avenue, Carle Place, NY)
Waldbaums (3620 Long Beach Road, Oceanside, NY)
Waldbaums (1510 Old Country Road, Riverhead, NY)

A&P looking for buyers

Last week A&P, which operates under the Super Fresh and Pathmark banners in the Greater Philadelphia market, acknowledged that it is "seeking alternatives for its business," adding that a sale of the company was only one of its options.

In other words, A&P is for sale.

According to a New York Post story, A&P is looking to sell 137 of its 301 stores, including all 10 of its Food Emporium stores in Manhattan, high-volume Pathmark stores in Queens and Staten Island, and low-volume A&P stores.

Ravitz to open PriceRite in Camden

Ravitz Family Market, the Wakefern Cooperative member planning to open a ShopRite in Camden (ShopRite to open 75,000 SF store in Camden), announced last month that it would also open a PriceRite store in the city's vacant Pathmark location. The company owns five other ShopRite stores in New Jersey.

PriceRite is expected to open in November and create 80-100 jobs. Much of Camden has been labeled a food desert by the U.S. Department of Agriculture due to its lack of supermarkets and access to fresh produce.

Bottom Dollar has lowest prices in Philly region, according to study

According to a story on CBS Philly, researchers from the Delaware Valley Consumers' Checkbook visited supermarkets across the Philadelphia region to see which retailer had the lowest prices. The shoppers compared prices on 151 items, including fresh produce, fresh meat, national brand prepared foods and dairy products.

And the winner is... Bottom Dollar. The discount grocer's basket sold for $78, compared to the same basket at Whole Foods, which cost $134.

Walmart and Wegmans (yes, Wegmans) came in second and third place, respectively. According to Checkbook Executive Director Kevin Brasler, Bottom Dollar, Walmart and Wegmans offered significant grocery savings on a daily basis, as compared to other supermarkets that attract customers with sales.

"Big chains like Acme, Pathmark, Giant and ShopRite really pull customers in with sale prices," said Brasler, who also pointed out that prices on other items can be high and even vary from store to store.

The researchers determined that Giant, Food Lion, ShopRite, Redner's, Target and Weis all have prices that are lower than average. Pathmark and Super Fresh, both owned by A&P, had prices that were higher than average, and Whole Foods and Acme had the highest prices.

Aldi was mentioned as having "steep savings" but a limited selection.

Tesco paying Yucaipa to take on its Fresh & Easy grocery stores

Nearly three years ago I posted a story titled, "Who is Tesco and why should we care?" I pointed out that the world's third largest retailer and dominant grocer in England had 168 Fresh & Easy grocery stores on the west coast of the United States, and had the capital to make itself a supermarket player here in the Philly market by buying up stores and chains, if it so desired.

Well, that's not going to happen. In an announcement last week, it was reported that Tesco will pay private equity firm Yucaipa $235 million to assume the supermarket chain's liabilities. Yucaipa will own and operate about 150 of the stores we well as a distribution facility, and close the remaining 50 stores. Tesco is even making a loan of about $125 million to help Yucaipa fund the operations.

Tesco CEO Philip Clarke hailed the decision as one that will allow his company to exit the U.S. market and protect more than 4,000 existing jobs.

According to Tesco, Fresh & Easy stores had a gross asset value of $362 million in February, and generated net losses of $253 million in its last fiscal year.

Yucaipa and its CEO Ron Burkle are no strangers to the supermarket business. The company's buyout of A&P (Pathmark, Super Fresh) in 2011 allowed the legendary supermarket chain to emerge from bankruptcy.

There is already talk that Yucaipa may decide to convert many of the Fresh & Easy stores into a Wild Oats Marketplace to compete directly with Whole Foods, but for the time being, it's business as usual.

Another New Jersey Pathmark to close

Supermarket News reported last week that the Pathmark store in Howell, NJ will close in October. According to union sources, the employees were notified the previous week.

Parent company A&P announced in July that Pathmark stores would close in Cherry Hill, Camden and Edgewater.  A&P, which also includes Super Fresh, Waldbaum's, The Food Emporium and Food Basics, recently hired Credit Suisse to help review strategic alternatives that may include selling the company.

Many think the end is near for the iconic brand, a sentiment that's hard to argue with as competitors like ShopRite, Giant and others continue to eat away at A&P's market share.

A&P may put itself up for sale

According to multiple reports, A&P, formally known as the Great Atlantic and Pacific Tea Company, has hired Credit Suisse to help review strategic alternatives that may include selling the company. A&P brands include Pathmark, which recently announced the closing of three stores in New Jersey, as well as Superfresh, Waldbaum's, The Food Emporium and Food Basics.

Bloomberg News reports that A&P may also raise new capital from investors, consider new business partners or refinance the company.

A&P, which emerged from bankruptcy last year, has more than 300 locations. The Wall Street Journal said yesterday that the company's asking price could be as high as $1 billion.

ShopRite opens Lawnside, NJ store

ShopRite opened in Lawnside, NJ last weekend at the site of a former Pathmark. The 56,000 square foot store had been vacant for 15 months. The new supermarket is the second store owned by David and Renee Zallie.

According to a number of reports, area residents expressed their excitement Sunday about having a grocery store back in the township. One customer, who weighed 400 pounds before having gastric bypass surgery, was happy to find out that the new ShopRite offers free nutritional counseling. Isn't that nice.

Pathmark closing three South Jersey stores

Several reports yesterday confirmed that A&P officials told employees that the company was closing Pathmark stores in Cherry Hill, Camden and Edgewater Park in 60 days. The closings will leave Ventnor as home to the only Pathmark in New Jersey. A&P closed Super Fresh stores in Westmont, Marlton and Plainsboro earlier this year.

The closing may be especially troublesome for Camden, often referred to as a food desert. However, ShopRite plans to open a store in Lawnside within the next couple years (ShopRite to open store in Camden County's Lawnside Township). The new store will be about 10 minutes from the Pathmark location.

According to a union official that represents employees at Pathmark, A&P said they were "losing a lot of money..."

Supermarket analyst Matthew Casey said all three stores were unprofitable.

In a news report last night on one of the major networks, the reporter claimed that shopping patterns for thousands of people would change due to the closings. I would argue that if shopping patters hadn't already changed, the stores wouldn't be closing.

Philly's fragmented market weeding out "losers"

A recent story in the Supermarket News says that Philadelphia's grocery landscape is "largely being written by its losers." And by losers Supermarket News means Genuardi's, Acme and A&P (Pathmark, SuperFresh).

Genuardi's is down to one store, and the exit of the once mighty brand set the stage for Giant to compete with ShopRite as the market's leading grocer. No one is sure yet what will happen to Acme, which is now part of the investor group led by Cerberus, and A&P continues to struggle.

Bob Gorland of Matthew P. Casey & Associates claims that no other metro area in the entire U.S. has as many chain and strong independent operators as Philadelphia, noting that every major club store and drug chain is here, not to mention "numerous price operators of all shapes and sizes."

The result is a fragmented market, with "losers" giving way to gainers like Giant, ShopRite, Wegmans, Walmart and Bottom Dollar. And the biggest opportunities ahead, according to Gorland, are for the stronger competitors to take over the weaker ones.

Below are the market share leaders for the 11-county Philadelphia market, according to Metro Market Studies, a firm based in Tuscon, AZ.

Note that this is a faulty list, as ShopRite is listed by operator, not as one brand. Last June's Food Trade News market study listed ShopRite as the clear market leader of the 15-county Delaware Valley.

Giant - 15.1%
Acme - 14.9%
Walmart - 5.9%
Pathmark - 5.6%
BJ's - 4.9%
Costco - 4.7%
Wawa - 4.6%
Wegmans - 4.0%
Brown's ShopRite - 3.6%
Zallie ShopRite - 3.1%