Several Aldi stores opening soon in Southeastern PA

The Mercury reported recently that Aldi plans to open stores in Pottstown and Malvern, with the Pottstown store slated to open at the end of this month, and the Malvern store coming in the fall. And last week The Delaware County Times reported that Aldi would open on June 14 in the former Giant supermarket space in Brookhaven.

In addition, Aldi will begin construction in Lansdale once the former Super Fresh space is knocked down.

Aldi currently has more than 1,750 stores in 35 states, and has been aggressively opening new stores and renovating existing stores. The company plans to open about 750 new stores in the U.S. by the end of 2022.

Overall, Aldi has over 10,000 stores in 20 countries.

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.

Acme to be repaced by residences in Society Hill, Philadelphia

The Acme store in Philadelphia's Society Hill will close once its lease expires in two years and be replaced by a residential building, according to a report in today's Philadelphia Inquirer. The report says that Alterra Property Group received a conditional zoning permit last week that allows for the demolition of the current building as well as the construction of a five-story structure with 43 underground parking spaces.

Neighborhood residents and the Society Hill Civic Association oppose the project, which needs to be reviewed by the Philadelphia Historical Commission since it's located within a historical district.

Acme acquired the store after A&P's bankruptcy in 2015. It had been operating for several years as a Super Fresh.

McCaffrey's planning two new PA stores

McCaffrey's Food Markets announced recently that it would open a new, small format store in Doylestown, as well as a 50,000 square foot store in Blue Bell that was previously occupied by Super Fresh. Both stores are expected to open in the spring.

The Doylestown store will be called Simply Fresh by McCaffrey's and will occupy only 13,000 square feet. It will be located in a restored landmark building and offer gourmet prepared foods and sandwiches, crepes, sushi, cheeses, custom cakes, gourmet coffee, and hundreds of organic and exotic products offerings.

McCaffrey's currently has four stores in PA and NJ.

Key Food Co-op acquires Super Fresh name

Earlier this month the Key Food Cooperative reported that it had acquired the Super Fresh brand from A&P and that it is "planning to open several stores under the Super Fresh banner in the near future, the first of which may be as early as this month."

Key Food previously acquired the Food Emporium banner in a bankruptcy auction and is using that name on properties it acquired from A&P in Manhattan.

Last November the Key Food Cooperative completed the purchase of 23 A&P stores, bringing the total number of stores under its management to 212. It is the largest grocer in New York City.

According to the report, the Super Fresh banner was created in Philadelphia in 1982 as part of a deal between organized labor and A&P. A&P filed for bankruptcy and ceased operations last year after 156 years in business.

Acme opens Jersey Shore stores

Acme continued its recent comeback with the opening of a 50,000 square foot store in Barnegat, NJ in a location vacated by Genuardi's in 2012. Acme now has 178 stores across Pennsylvania, New Jersey, Delaware, Maryland, New York and Connecticut.

The opening in Barnegat, a Jersey Shore town, follows the opening of a store five miles away in a former Super Fresh location in Manahawkin, as well as the re-opening and expansion of Acme's store on Long Beach Island, about 11 miles away.

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.

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.

ShopRite to open in Lower Makefield, PA

Nearly three years after Super Fresh closed its doors at Oxford Oaks Shopping Center in Lower Makefield, PA (Bucks County), ShopRite announced that it will gut and renovate the 57,000 square foot space and open later this year.

ShopRite of Hunterdon County, which operates three stores in New Jersey, will own and operate the new store, and has plans for a fifth store in Bethlehem.

According to ShopRite of Hunterdon County President Joe Colallilo, the Lower Makfield store will offer "ShopRite From Home," a fee service that allows customers to order online and pick up their groceries at the store or have them delivered.

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.

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%

A&P to see $130 million gain from real estate transactions

A&P, parent company of Super Fresh, Pathmark and others, announced last week that pending leasehold sales and sale-leaseback deals are expected to generate in excess of $130 million for the company. The properties affected were not identified.

President Sam Martin said the additional liquidity will help A&P invest in its stores and execute its strategic initiatives.

A&P, which emerged from bankruptcy a year ago, has continued to struggle and recently closed three Philadelphia area Super Fresh stores and has expressed interest in selling its Food Emporium chain.

A&P close to a sale of its Food Emporium chain

According to a story in Crain's New York Business, the sale of A&P's 16-store Food Emporium chain in Manhattan is imminent. As of late last month, the investment banking firm Duff & Phelps was soliciting final bids from buyers, including Kings Food Markets, a 24-store chain that operates in New Jersey, Long Island and Connecticut, that wants several of the Food Emporium stores.

Gristedes, which operates approximately 30 stores in Manhattan and surrounding areas, submitted a bid for the entire chain, but it appears A&P is leaning towards a sale to multiple buyers.

The Crain's story also reports that the union representing some of Food Emporium's 1,100 employees is suing A&P to stop a sale to buyers who would not honor its current labor contracts, although such a buyer would only have to honor the contracts if A&P made it a condition of the sale.

A&P, officially known as the Great Atlantic & Pacific Tea Company, also owns Pathmark, Super Fresh, Waldbaum's and Food Basics grocery stores.

Three Super Fresh stores to close in NJ

A&P has announced it will close three New Jersey Super Fresh stores in January. The stores are located in Evesham (Marlton), Haddon Township and Plainsboro.

Since New Jersey-based A&P filed for bankruptcy protection nearly two years ago, several of its banners have closed in the state, including many Pathmark stores and a Super Fresh. Stores have been closed elsewhere as well. The company emerged from bankruptcy as a private company earlier this year.

According to Super Fresh's website, there are currently 25 stores operating, including the three slated for closure. 12 are in Pennsylvania, six in New Jersey, five in Delaware and two in Maryland.

Overall, A&P operates more than 300 stores under the A&P, Food Basics, The Food Emporium, Pathmark, Super Fresh and Waldbaum's banners.

A&P to sell Food Emporium's Manhattan stores

The Great Atlantic and Pacific Tea Company (A&P), the parent company of Pathmark and Super Fresh, announced earlier this week it is selling Food Emporium's 16 Manhattan locations. The stores, its leases and the brand name are for sale.

Earlier this year A&P emerged from bankruptcy as a private company, and also with 75 fewer stores than it had pre-bankruptcy. In addition to Pathmark and Super Fresh, the company owns Waldbaum's and Food Basics. Analysts believe the proceeds from the sale of Food Emporium will be invested into the other A&P brands.

A&P to shift accounting work to India

A&P (Super Fresh, Pathmark) announced last week that it plans to outsource certain accounting functions to India. The company expects the transition will be completed by February 2013. No word yet on how many employees will be impacted.

ShopRite, Giant tops again in Greater Philly sales

I received the highly anticipated Market Study issue of the Food Trade News last week.  As usual, there was an incredible amount of information about the supermarket industry in the PA, NJ and DE markets.

The headline was that ShopRite remains a strong leader (based on total sales) in the 55-county market area that stretches from Northern New Jersey to Central Pennsylvania to New Castle County, Delaware. Giant is a strong second, and Walmart has jumped into third. The new "big three" account for more than one third of the $49.5 billion retail food market.

In the eight-county Philadelphia market (Philadelphia, Bucks, Montgomery, Chester, Delaware, Burlington, Camden and Gloucester), ShopRite is slightly ahead of Giant, followed by three brands headed in the wrong direction: Acme, Super Fresh/Pathmark/A&P, and Genuardi's. The rest of the top 10 consists of Wegmans, Save-A-Lot, Whole Foods, Redner's Markets and Thriftway/Shop 'n Bag.

For more information than you can grasp in one sitting, check out the Market Study issue here: Food Trade News.