A&P Family Mart
| Company type | Private (historically) |
|---|---|
| Industry | Grocery retail |
| Founded | 1859 |
| Founder | George Gilman |
| Defunct | 2015 |
| Headquarters | Jersey City , United States |
Area served | United States, Canada (historically) |
Key people | George Gilman, George Huntington Hartford, George Hartford Jr., John Hartford |
| Products | Grocery stores, private label food products |
The Great Atlantic & Pacific Tea Company
The Great Atlantic & Pacific Tea Company, commonly referred to as A&P, was a prominent American grocery store chain that operated from 1859 until its closure in 2015. Between 1915 and 1975, A&P held the position as the largest grocery retailer across the United States and, up until 1965, was the nation's biggest retailer overall.
Recognized as a quintessential American brand, The Wall Street Journal once described A&P as "an icon comparable to today's McDonald's or Google" and dubbed it "the Walmart of its era." At its height during the 1940s, the company accounted for approximately 10% of all grocery expenditures in the U.S. Renowned for its pioneering efforts, A&P played a significant role in enhancing consumer dietary habits by offering an extensive range of food products at substantially reduced prices. Up until 1982, A&P also maintained a considerable presence in food manufacturing.
The company's origins trace back to 1859 when it was established as "Gilman & Company" by George Gilman. Initially, Gilman launched a modest chain of tea and coffee retail shops in New York City, which later expanded into a nationwide mail-order enterprise. By 1878, the business had grown to encompass 70 stores, and by the turn of the century, nearly 200 outlets were in operation. A&P experienced rapid expansion after introducing the economy store model in 1912, reaching 1,600 locations by 1915. Following World War I, the company diversified its offerings to include meat and produce sections while simultaneously broadening its manufacturing capabilities.
By 1930, A&P had become the largest retailer globally, generating sales totaling $2.9 billion (equivalent to several billion dollars today) with a network of 15,000 stores. In 1936, it embraced the self-service supermarket format and launched approximately 4,000 larger stores by 1950, gradually discontinuing many smaller outlets. Despite enduring two bankruptcy proceedings later in its history, A&P ultimately ceased operations completely in 2015.
1859–1878: Gilman period
The origins of A&P trace back to the 1850s when Gilman & Company was established by George Gilman (1826–1901) to carry on his father’s leather tanning enterprise. By 1858, the business operated out of 98 Gold Street in Manhattan. Following his father’s death in 1859, George Gilman inherited substantial wealth. That same year, the company diversified into the tea and coffee trade from its existing location. Some accounts suggest that Gilman shifted to a more prestigious industry due to his financial standing. In May 1861, George delegated the tanning operations to his brother Winthrop and relocated the tea business to 129 Front Street. Initially functioning as a wholesaler, by early 1863 the company transitioned into retail under the name Great American Tea Company. It rapidly expanded, launching five outlets and moving its headquarters and warehouse to 51 Vesey Street.
Gilman demonstrated exceptional skill in marketing, swiftly growing the enterprise through promotions emphasizing low prices. The company’s ability to act as both wholesaler and retailer enabled it to maintain competitive pricing. Additionally, Gilman developed a nationwide mail order system. By 1866, the firm’s valuation exceeded $1 million (~$Template:Format price in Template:Inflation/year). After completion of the transcontinental railroad in 1869, Gilman launched a parallel venture named the Great Atlantic & Pacific Tea Company to introduce prepackaged tea branded as Thea-Nector. Some sources credit George Huntington Hartford as a co-founder of this entity. The mail-order segment retained the Great American branding. In 1871, A&P pioneered customer incentives by offering premiums such as lithographs, fine china, and glassware with purchases of coffee or tea—a practice that has since become collectible.
Development of the grocery store
George Huntington Hartford began his career at Gilman & Company potentially in the late 1850s as a clerk, advancing to bookkeeper and then cashier by 1866. By 1871, Hartford held significant authority and was instrumental in expanding A&P into Chicago shortly after the devastating Great Chicago Fire. The first store outside New York City opened mere days following that event. The company grew rapidly; by 1875 it operated outlets in 16 cities. In 1878, Gilman withdrew from active management, entrusting Hartford with leadership. At that time, A&P managed around 70 well-appointed stores alongside its mail order operations, generating combined annual sales of approximately $1 million.
To increase revenue streams, Congress raised tariffs on tea and coffee, which reduced profitability on those items. Around 1880, A&P introduced sugar sales in its stores to offset declining margins. The company continued its expansion aggressively; by 1884 it had outlets extending westward to Kansas City and southward to Atlanta. Rural customers were served via wagon routes. During this period, two of Hartford’s sons—George (1864–1957) and John (1872–1951)—joined the enterprise. Company lore credits George with persuading his father to broaden the product range by launching A&P-branded baking powder. Over the following decade, additional private label items such as condensed milk, spices, and butter were introduced. This diversification marked the gradual emergence of one of America’s first grocery chains. By 1900, A&P operated 198 stores alongside mail order and wagon route services, achieving sales totaling $5 million (~$Template:Format price in Template:Inflation/year). However, competitors were expanding more rapidly within concentrated regions while A&P’s stores remained dispersed over a wider area—placing it at a competitive disadvantage.
Following George Gilman’s death in 1901 without a will, his numerous heirs engaged in litigation over company control. Senior Hartford asserted that an informal partnership agreement from 1878 granted him half ownership of A&P. Court evidence confirmed that Hartford had been receiving half of the profits since that year and that leases were held under his name. Recognizing that excluding Hartford would jeopardize profitability, Gilman’s heirs settled in 1902 by incorporating A&P with assets valued at $2.1 million (~$Template:Format price in Template:Inflation/year).
Under this arrangement, Gilman heirs received $1.25 million in preferred shares bearing 6% interest while Hartford obtained $700,000 in common stock plus the remainder of preferred shares—securing control over voting stock. Over time, Hartford repurchased preferred shares from Gilman’s descendants. The company maintained an aggressive expansion pace—opening one store approximately every three weeks—and constructed a nine-story headquarters and warehouse complex in Jersey City, which later incorporated manufacturing facilities and a bakery.
By 1908, George Hartford Sr. delegated operational roles between his sons: George Jr. oversaw finance while John managed sales and operations. These brothers jointly directed A&P for more than four decades. John aggressively promoted the A&P brand and significantly expanded product offerings. To accommodate new merchandise lines within stores, traditional premiums were replaced with Plaid Stamps—a loyalty program designed to compete with popular rewards like S&H Green Stamps. By 1912, A&P operated approximately 400 outlets with a gross margin averaging 22%, yielding a net profit around 2%. Additionally, peddlers serviced roughly 5,000 rural routes using distinctive red-and-black wagons.
Expansion of economy stores
During the 1912 presidential race, Food prices became a significant political concern following a 35% rise over a decade.[1] In response, certain chains tested a no-frills retail approach.[2] After extensive discussion, the Hartford family approved John's suggestion to trial an economy store model aimed at maintaining a 12% gross margin. With just $3,000 in capitalization—including starting inventory—the initial economy store operated with only a manager and minimal fixtures. Within two months, weekly revenue climbed to $800, yielding a 30% annual return on investment. This success prompted A&P to rapidly roll out the concept; by 1915, the company managed 1,600 such outlets.
The rapid expansion of A&P created friction with suppliers. Cream of Wheat, the leading breakfast cereal producer, insisted that all retailers comply with its standardized box pricing. Buying the product wholesale at 11 cents per box—3 cents below standard—A&P set a modest 1-cent markup for its budget stores. In retaliation, Cream of Wheat halted shipments, prompting A&P to file suit. U.S. District Judge Charles Hough ruled against A&P, affirming that manufacturers could dictate retail prices. Consequently, A&P and other major chains increased production of private-label brands.[3]
Following Hartford Sr.'s death in 1917, company control transferred into a trust managed by his sons George, Edward, and John as trustees with full authority.[4]
Introduction of combination stores with grocery, meat, produce, and dairy
Post-World War I, A&P experienced swift growth; by 1925, it operated 13,961 locations.[5] These newer combination stores incorporated sections for meats, fresh produce, and dairy alongside traditional grocery products. Revenue reached $400 million with profits totaling $10 million. Nevertheless, the Hartford brothers grew concerned that gross margins had climbed to 22% to offset rising expenses, signaling a departure from their low-cost strategy. Early in 1926, they engaged division managers in discussions and initiated efforts to reduce prices and tighten cost controls. That year saw sales grow by 32%, and A&P relocated its headquarters to the new Graybar Building near Grand Central Terminal.[6]
In 1927, A&P launched its Canadian division; by 1929 it operated around 200 stores across Ontario and Quebec.[7] By 1930, the corporation’s network had expanded to 16,000 stores generating $2.9 billion (~$Template:Format price in Template:Inflation/year) in sales,[5] capturing approximately 25% market share within its operating regions and about 10% nationwide. No other retailer had achieved such scale: A&P was twice the size of its nearest competitor Sears and quadruple that of grocer Kroger. Unlike many rivals, A&P was well-positioned to endure the Great Depression, having built its empire debt-free; its low-price model further boosted sales during this period. Between 1929 and 1932, A&P reported record after-tax profits of $110 million, with each Hartford heir receiving dividends and equity exceeding $5 million annually.[6]
However, A&P’s dominance sparked significant opposition threatening its survival. Thousands of small independent grocery stores struggled to compete with A&P’s pricing. While these small retailers lacked substantial political influence individually, their thousands of wholesale suppliers wielded considerable power. Anti-chain store movements gained momentum in the 1920s and intensified during the Depression era. In 1935, Texas Congressman Wright Patman introduced legislation proposing a federal tax on chain stores that could have effectively dismantled A&P’s business model.[2]
Although this bill did not advance in Congress, Patman sponsored the Robinson–Patman Act in 1936 outlawing price discrimination among similar buyers; this law was enacted. Patman then reintroduced his original chain-store tax proposal. In response, A&P hired a lobbyist and ceased opposing unionization efforts by the influential American Federation of Labor (AFL). Additionally, George and John Hartford published an open letter warning that the proposed legislation would lead to higher food costs. These actions shifted public sentiment against the bill, ultimately resulting in its defeat.[2]
Transition to Supermarkets
The inaugural supermarket in California was established in 1930. On the East Coast, former A&P employee Michael J. Cullen launched the first King Kullen supermarket in Jamaica, Queens. Shortly thereafter, in 1932, Big Bear commenced operations in Elizabeth, New Jersey, rapidly matching the sales volume of a hundred A&P outlets. By 1933, A&P experienced a 19% decline in sales, dropping to $820 million, largely due to increasing competition. After significant deliberation, the Hartford brothers resolved to inaugurate 100 supermarkets, beginning with a location in Braddock, Pennsylvania. These new stores achieved considerable success; by 1938, the company managed 1,100 supermarkets. The chain continued expanding its supermarket presence while gradually phasing out smaller stores except within densely populated urban regions. By 1950, A&P operated approximately 4,000 supermarkets alongside 500 smaller outlets. Annual sales reached $3.2 billion with net profits of $32 million after taxes.
A&P's growth drew scrutiny from President Franklin D. Roosevelt's anti-trust chief, Thurman Arnold, who was prompted by Representative Wright Patman to investigate the company. In 1942, criminal charges alleging restraint of trade were brought against A&P and its senior executives—including the Hartford brothers—in the United States District Court for the Northern District of Texas in Dallas. However, in 1944, prosecutors withdrew these charges after the presiding federal judge deemed the case insufficiently strong.
On the same day that the Dallas charges were dismissed, identical accusations were filed against the same defendants in Danville, Illinois, overseen by Federal Judge Walter Lindley. Prosecutors argued that A&P's vertical integration—encompassing manufacturing, warehousing, and retailing—afforded them an unfair competitive edge by enabling lower pricing strategies. Additional grievances included A&P's refusal to purchase from food retailers who sold exclusively through brokers or declined to provide advertising allowances. The judiciary expressed concerns that unchecked expansion could lead A&P toward monopolistic dominance. In response, A&P highlighted its grocery market share was only about 15%, significantly less than leading firms in other sectors. Ultimately, Judge Lindley sided with the government and imposed fines of $10,000 on each defendant.
The U.S. Court of Appeals upheld Judge Lindley's ruling in 1949; subsequently, A&P opted against further appeals. In September of that year, the anti-trust division petitioned for a court order mandating the divestiture of A&P's manufacturing operations and splitting its retail business into seven separate entities. This move prompted thousands of supportive letters sent to the Justice Department on behalf of A&P. The Hartford brothers actively engaged with public opinion through extensive interviews with Time magazine and featured on its November 13, 1950 cover. Time noted that aside from General Motors, no retailer sold more goods worldwide than A&P. John Hartford was quoted stating, "I don't know any grocer who wants to stay small... I don't see how any businessman can limit his growth and stay healthy." The litigation extended into the more business-friendly environment of the Eisenhower administration. By late 1953, the government agreed to drop its breakup demands provided that A&P ceased operating its produce brokerage service which also supplied competitors.
In defending against anti-trust allegations, A&P underscored the substantial benefits their operations delivered to public welfare—a legacy attributed to George Hartford Sr. and his sons. The innovations introduced and refined by the Hartfords and their rivals facilitated healthier diets at more affordable prices. By 1950, average American food consumption had increased by 10% compared to 1930 levels, with lower-income families experiencing significant improvements in food quality. Economist John Kenneth Galbraith supported this view in his 1952 work American Capitalism, citing A&P as an example of countervailing power. He referenced a 1937 internal study by A&P assessing the potential establishment of a corn flakes manufacturing plant; merely contemplating entering this market compelled existing corn flake producers to reduce prices by 10%.
1951–1974: The Post-Hartford Period
Following John Hartford's death in 1951 at the Chrysler Building after attending a meeting of the automobile manufacturer's board, George Hartford continued as chairman and treasurer of A&P. He appointed Ralph Burger, the company’s longtime secretary, as president.[6] Burger began his career with A&P in 1910 as a clerk in Glens Falls, New York,[8] yet lacked the strategic marketing acumen that John Hartford had demonstrated. Under Burger’s leadership, A&P still reported record-breaking sales and maintained expenses at 12.6% of sales, which was below the industry average of 15%.
Burger also served as president of the John A. Hartford Foundation, established by John and George Hartford in 1929, ensuring his influence over A&P persisted after George’s death in 1957. Upon George’s passing, his trust was dissolved and A&P stock was made available on the New York Stock Exchange under the ticker GAP, initially priced at $59 per share. For the first time, six independent directors joined the company’s board. By late 1961, A&P shares reached a high of $70 (~$Template:Format price in Template:Inflation/year).[6]
The foundation for A&P’s prolonged decline—from leading grocery chain to bankruptcy and eventual liquidation—was laid during the 1950s due to several critical issues:
- Capital shortages hampered growth. Although publicly traded, control remained with Burger who led both A&P and the Hartford Foundation. Most profits were distributed as dividends to meet trust and heir income requirements. A&P resisted debt financing; its only capital source was from depreciation funds. While competitors invested heavily in larger, modern supermarkets, A&P lagged in updating its retail infrastructure. By 1970, its stores were notably smaller and generally older than those of rivals.[6]
- Overreliance on private-label merchandise. In 1951, a Supreme Court ruling prohibited manufacturers from enforcing minimum prices without retailer consent. This decision sparked a discount retail revolution[2] driven by a surge in television advertising that boosted demand for national brands. Despite this trend, A&P allocated considerable scarce capital toward expanding its manufacturing capabilities,[6] including investing $25 million to build what was then the largest food processing plant globally in Horseheads (town), New York.[9] Because many A&P outlets were smaller, private-label goods dominated shelf space while national brands were frequently out of stock.[6]
- Labor expenses exceeded those of most competitors. As growth stalled, a growing proportion of employees earned higher wages due to seniority—a challenge not faced by rapidly expanding competitors with fewer long-tenured workers. To counterbalance rising labor costs, A&P reduced staff numbers per store, which led to longer checkout lines and sparsely stocked shelves.[6]
In an effort to boost declining sales volume, Ralph Burger reintroduced trading stamps through A&P's Plaid Stamps program; however, initial improvements faded by late 1962. At that point, the six outside directors threatened resignation unless Burger resigned. Burger stepped down in May 1963 when shares traded in the $30 range (~$Template:Format price in Template:Inflation/year).[6] Successive presidents failed to halt the company's downturn until William J. Kane took over in 1971. Kane had started with A&P as a store clerk in 1934 and believed revitalization could be achieved by concentrating on fundamental store operations such as cleanliness, product availability, customer service, and courtesy.
When progress stalled under this approach, Kane introduced a strategy focused on deep price reductions by transitioning stores into warehouse-style outlets known as W.E.O.—Warehouse Economy Outlet (or Where Economy Originates). However, most stores were too small to effectively support this format; consequently, losses escalated rapidly. By early 1973, stock prices had fallen to $17 per share when Charles Bluhdorn of Gulf+Western made a tender offer at $20 per share. Kane declined the proposal despite some shareholders viewing it favorably given ongoing challenges.[6] In response to these difficulties, A&P withdrew from California in 1971 and Washington in 1974, restricting its western presence to Missouri.[10] Additionally, in 1974 the company relocated its headquarters from the Graybar Building to Montvale, New Jersey.[6]
1975–2001: The Scott and Wood Leadership Period
In February 1975, A&P reviewed a proposal from Booz Allen Hamilton recommending the closure of 36% of its 3,468 outlets. Kane consented to step down, and Jonathan Scott, then 44 and president of Albertsons, took over. During Scott’s tenure, A&P shuttered 1,500 stores over three years, trimming its count to 1,978 locations. He recruited numerous external executives and decentralized decision-making to regional managers. Within his initial three years, A&P constructed 300 supermarkets ranging from 23,000 square feet (2,100 m2) to 32,000 square feet (3,000 m2) in size, and launched its inaugural combined grocery and pharmacy stores under the A&P Family Mart brand, with the first opening in Greenville, South Carolina in 1977 as The Family Mart.[11]
The Family Mart outlets typically spanned between 40,000–55,000 square feet (3,700–5,100 m2), representing some of the earliest A&P locations to integrate a full-service supermarket with a pharmacy.[11] Scott advanced Kane’s initiatives to enhance fundamental store operations—focusing on cleanliness and customer service—by introducing an extensive training program. Weekly sales per store rose from $37,000 in 1974 to more than $70,000 by 1976, with overall sales climbing from $6.4 billion to $7.2 billion despite the reduction in store numbers. Additionally, manufacturing processes were restructured.[11] Despite encouraging early progress, by 1978 A&P’s profits began declining due to economic challenges linked to high inflation.
With the stock price dropping to $7 per share, the John A. Hartford Foundation concluded that waiting for a recovery was no longer viable. Erivan Haub, proprietor of Germany’s Tengelmann Group, showed interest. Born in 1930, Haub had studied retailing post-World War II in the U.S. and expanded his family’s grocery business into a chain of approximately 2,000 stores generating annual sales equivalent to $2 billion. Although maintaining ties to Germany, his children were American-born.
Haub agreed to acquire 42% of A&P shares at $7.375 each and incrementally increased his stake until owning 50.3% by February 1981. Scott opted not to renew his five-year contract; Haub appointed James Wood as chairman. Wood, an Englishman of similar age to Haub, had previously led the American supermarket chain Grand Union. Many executives hired under Scott departed and were replaced by Wood’s associates from Grand Union.
In Germany, Tengelmann found success with its Plus stores—smaller outlets emphasizing low-cost private-label items alongside a limited selection of meats and produce. A&P attempted to replicate this model in the U.S., launching several Plus divisions to leverage its manufacturing facilities and smaller store network. However, this approach failed to resonate with American shoppers who preferred competitors offering discounted national brands.
Recognizing the need for further consolidation, James Wood initiated another significant store reduction plan in October 1981. The strategy aimed to shrink A&P’s footprint below 1,000 stores and included closing its Chicago division. Concurrently, most manufacturing operations were shut down except for four coffee warehouses. To fund this initiative, A&P planned to terminate its non-union pension plan using a $200 million surplus; obligations were covered by annuities costing about $130 million due to high interest rates at that time. Non-union employees were provided with a defined contribution 401(k) plan.
William Walsh, a recently retired executive then, filed a class-action lawsuit that ultimately resulted in increased annuity values. Despite this adjustment, A&P realized over $200 million in funds without incurring taxes because of tax loss carryforwards from earlier restructuring efforts. The company also intended to close its Philadelphia division unless unions accepted contract concessions; when unions declined, closures proceeded. Although unions proposed purchasing the stores, they lacked sufficient capital. Instead, they agreed to a profit-sharing agreement contingent on A&P establishing a new subsidiary operating under a different brand name. The resulting banner—"Super Fresh"—proved profitable.[12] This experience demonstrated that the value of the A&P brand had diminished significantly.
Beginning in 1982, A&P expanded by acquiring multiple chains which continued operating under their original names instead of rebranding as A&P. Although profitability returned during the 1980s, by 2002 A&P faced record losses driven largely by intensified competition from retailers like Walmart. This prompted additional store closures including divesting its substantial Canadian operations and spinning off Eight O'Clock Coffee, its last manufacturing asset.[13] When Stop & Shop exited New Jersey in 1982—and remained absent for nearly two decades—A&P acquired many of those stores as replacements for outdated locations. In 1983 it purchased Wisconsin-based Kohl's Food Stores (formerly part of the Kohl's department store chain) from BATUS, marking reentry into Wisconsin and Illinois markets. The following year saw acquisition of Pantry Pride's Richmond division.[1] In 1985 A&P strengthened its Canadian presence by closing some Quebec locations while acquiring Ontario’s Dominion Stores.[7] Concurrently in the U.S., construction commenced on larger supermarkets called A&P Future Stores, measuring approximately 40,000 square feet (4,000 m2).[14][15]
In 1986 A&P acquired Waldbaum's, which operated in southern New York and southern New England regions, along with The Food Emporium, an upscale chain based in New York City.[16] Three years later it purchased Michigan’s Farmer Jack. That same year it sought European expansion by bidding unsuccessfully for the UK’s third-largest grocery chain—the Gateway Corporation—although it did operate stores in the Netherlands until the early 2000s.[1] By decade’s end, A&P reported a profit margin of 1.3%, surpassing the industry average of 1.04%, on revenues totaling $11 billion.[17]
During the early 1990s economic downturn and mounting competition from Walmart contributed to renewed struggles for A&P. Sales fell to $1.1 billion with losses reaching $189 million in 1992. In response, A&P bolstered its private label offerings and revamped remaining U.S. operations by expanding or replacing smaller stores under 40,000 square feet (4,000 m2) with larger formats ranging between 50,000 square feet (5,000 m2) and 80,000 square feet (7,000 m2) that featured pharmacies, expanded bakeries, and broader general merchandise selections.[1]
A&P continued retreating from Southern markets such as Alabama, Florida, Georgia, Kentucky, the Carolinas, Tennessee, and Virginia—many locations sold off primarily to Kroger. Consequently, operations consolidated into four regions: Northeast; Midwest (Michigan and Wisconsin); New Orleans; and Ontario. To strengthen its New Orleans presence it acquired six supermarkets from John G. Schwegmann. By this point store count had fallen to approximately 600.[1] Christian W.E. Haub—Erivan Haub's youngest son—became co-CEO in 1994 before assuming sole CEO duties in 1997 upon Wood’s retirement; Haub also took over as chairman in 2001 when Wood stepped down from that role.[17]
2001–2015: The concluding phase as a supermarket chain
Walmart established a commanding presence across the grocery sector nationwide, compelling numerous competitors to scale back operations; however, within A&P’s primary Northeast market, Walmart had yet to become a significant grocery rival. After reporting its largest loss in 2003, A&P shuttered Kohl’s Food Stores along with its remaining outlets in Vermont and New Hampshire,[18] bringing its store count down to just over 500.[1] That same year, A&P divested its last manufacturing asset, the Eight O'Clock Coffee division, selling it to Gryphon Investors for $107 million.[13] (Gryphon later sold Eight O’Clock Coffee in 2006 to Tata Global Beverages for $220 million).Cite error: The opening <ref> tag is malformed or has a bad name
In 2005, A&P disposed of its Canadian division, comprising 237 stores under banners such as A&P, Dominion, Ultra Food and Drug, and Canadian Food Basics units, to Montreal-based Metro Inc. for Can$1.7 billion in cash plus Metro shares.[19] By 2009, the A&P brand was phased out from these locations.Cite error: The opening <ref> tag is malformed or has a bad name Two years later, in 2007, A&P exited the New Orleans market, consolidating its presence solely within the Northeast.[2] That same year, it acquired longtime Northeastern competitor Pathmark for $1.4 billion (~$Template:Format price in Template:Inflation/year).[20] This acquisition reinstated A&P as the largest supermarket operator in the New York City metropolitan area.[20] Concurrently, Tengelmann reduced its stake to 38.5%, while private equity firm Yucaipa, a major Pathmark shareholder, obtained a 27.5% share in A&P. In 2012, following bankruptcy proceedings, A&P reemerged as a private company,[21] with Tengelmann divesting its holdings and the company briefly returning to modest profitability during 2013 and 2014.
This restructuring enabled A&P to reclaim its status as the largest grocery retailer in New York City and second-largest in Philadelphia. Nevertheless, the Federal Trade Commission determined that this merger created monopolistic conditions in certain areas of Long Island and Staten Island.Cite error: The opening <ref> tag is malformed or has a bad name To comply with the FTC’s ruling, A&P was required to sell off some Waldbaum's and Pathmark stores.[22][23]
By the time A&P celebrated its 150th anniversary in 2009, it ranked No. 21 on Supermarket News’s list of the top 75 North American grocery retailers based on estimated fiscal year 2008 sales of approximately US$9.6 billion (~$Template:Format price in Template:Inflation/year).[24] At that point, Tengelmann held about 38.5% ownership of A&P, Yucaipa possessed a 27.5% stake, with the remainder distributed among individual investors and shareholder groups. Christian Haub served as chairman while Eric Claus departed as president and CEO; Sam Martin assumed these leadership roles.Cite error: The opening <ref> tag is malformed or has a bad name
Initial Chapter 11 Bankruptcy (2010)
| Year | Number of Stores |
|---|---|
| 1863 | 5 |
| 1878 | 70 |
| 1900 | 400 |
| 1915 | 1,600 |
| 1930 | 15,709 |
| 1950 | 4,500 |
| 1970 | 4,000 |
| 1980 | 2,000 |
| 1990 | 1,000 |
| 2000 | 600 |
| 2010 | 395 |
| 2015 | 296 |
All operations ceased by November 25, 2015.
|}
The Great Recession significantly impacted many grocery chains as shoppers increasingly turned to discount retailers. A&P was particularly vulnerable due to its elevated debt incurred from acquiring Pathmark. In June 2010, the company ceased payments totaling $150 million (~$Template:Format price adjusted for Template:Inflation/year) in rent on shuttered Farmer Jack locations.[25] By August, A&P declared plans to shut down an additional 25 stores across Connecticut, Maryland, New Jersey, New York, and Pennsylvania; this included 13 Pathmark outlets, six A&P stores, two Waldbaum's, and four Super Fresh stores. The following month, A&P revealed the sale of seven Connecticut stores to Big Y.Cite error: The opening <ref> tag is malformed or has a bad name
Rumors about bankruptcy surfaced on December 10, 2010, causing A&P’s stock price to plummet from above $3 per share to under $1 before trading was suspended. Two days later, the company officially filed for Chapter 11 protection. Court documents filed in White Plains, New York disclosed assets exceeding $2.5 billion alongside debts amounting to $3.2 billion.[26][27]
Following the filing, A&P continued operations (with its ticker changed to GAPTQ) while formulating a restructuring strategy. In November 2011, the firm announced securing $490 million (~$Template:Format price adjusted for Template:Inflation/year) in combined debt and equity funding from Yucaipa, Mount Kellett Capital Management, and Goldman Sachs Asset Management–managed investment funds. This financing facilitated A&P’s successful emergence from Chapter 11 as a privately held company in early 2012.Cite error: The opening <ref> tag is malformed or has a bad name Concurrently, Christian Haub departed from the company and Tengelmann wrote off its remaining equity stake.[28]
Second Chapter 11 Bankruptcy and Closure of Supermarkets
A&P managed a brief return to modest profitability by implementing cost reductions across its remaining outlets, although consumer purchases continued to decline. In 2013, the company was once again placed on the market but failed to attract an appropriate buyer. Sam Martin stepped down in January 2014, and in March, Paul Hertz assumed the roles of CEO and President as the company reached a break-even point. On January 15, 2015, the industry publication Supermarket News confirmed that A&P was still available for sale.
Reports suggested interest from several entities, including Cerberus Capital Management, which retained ownership of Albertsons assets. However, no viable offers materialized. By May, speculation grew about A&P’s worsening financial condition after it reported a substantial loss for the previous fiscal year in April, losing additional market share to more efficiently operated competitors. With customer traffic dwindling, the company contemplated filing for bankruptcy protection for the second time within five years.
There were circulating reports that A&P might divest all stores located more than 40 miles from its headquarters, potentially reducing its footprint to approximately 100 stores. Other speculation included a complete sale of all locations. Additional rumors involved filing for Chapter 7 bankruptcy leading to full liquidation by selling assets piecemeal, as well as pursuing Chapter 11 bankruptcy with segmented sales. Despite these rumors, the company remained on the market as a whole entity but did not receive any purchase offers for individual stores. Alternative strategies were also considered, including selling other company assets.
On July 19, 2015, A&P officially filed for Chapter 11 bankruptcy protection and promptly shuttered 25 underperforming locations. The following day, it was announced that 76 stores—including Super Fresh and Pathmark branches along with one Food Emporium store—had been sold to Albertsons, owner of Philadelphia-based Acme Markets. Stop & Shop acquired 25 stores primarily consisting of Pathmark outlets in New York City and Nassau and Suffolk counties. The Key Food cooperative purchased 23 stores mainly situated in New York City, encompassing all remaining Food Basics and Food Emporium locations.
Morton Williams took ownership of two Food Emporium stores in Manhattan, while Wakefern Food Corporation—the cooperative operating ShopRite and PriceRite—secured 12 stores, including nine Pathmark locations. Several local grocery operators also obtained units through direct purchases or auction processes. By November 25 (Thanksgiving Eve), all supermarkets under A&P had ceased operations. The final segment of the company, Best Cellars at A&P, had its stores auctioned off during summer 2016; eleven stores were sold (none continuing as operating businesses) and six lease agreements were declined.
Store design
According to the A&P Historical Society, the earliest stores were described as "splendid emporiums" adorned with vermilion paint and featuring a prominent gas-lit T sign. Their interiors boasted crystal chandeliers, tin ceilings, and walls decorated with gilt-edged Chinese panels. Customers were served by clerks positioned behind extensive counters, as self-service did not become widespread until the 1930s. The cashier's area was uniquely designed in the shape of a pagoda.[29] When A&P introduced premiums, the wall opposite the counter was outfitted with expansive shelving to showcase these promotional items.
In the early 1900s, under John Hartford’s marketing leadership, A&P began distributing S&H Green Stamps to accommodate a broader selection of grocery products within their stores.[30] Hartford’s development of economy stores in 1912 removed unnecessary embellishments. These typically measured around 600 square feet (56 m2) and featured simple shelving alongside a small ice box. A&P favored short-term leases to enable swift closure of underperforming locations.[31]
By the early 1920s, A&P launched combination grocery, meat, and produce outlets that evolved into supermarkets during the 1930s. On average, one supermarket replaced six older combination stores. The company’s policy of short-term leasing contributed to varied store designs persisting into the 1950s.[32] Throughout the mid-20th century, A&P stores were notably smaller than those operated by competing chains; even as late as 1971, half of their locations were under 8,000 square feet (740 m2).[33]
During the Scott administration, store design underwent modernization with oversight centralized at headquarters. A&P introduced four prototype sizes: 23,000 square feet (2,100 m2), 28,000 square feet (2,600 m2), 30,000 square feet (2,800 m2), and 32,000 square feet (3,000 m2). The Family Mart concept combined grocery and drugstore elements within approximately 40,000 square feet (3,700 m2) of retail space.Template:Fix/category[citation needed]
Futurestore
In the Wood era, A&P pioneered the "Futurestore" concept featuring black-and-white interior designs.[34] This design approach was initially trialed within Family Mart locations.[35]
Futurestore represented one of two concepts A&P launched during the 1980s (the other being Sav-A-Center, now defunct). The inaugural Futurestore opened in the New Orleans region in 1984,[36] following conversion of two acquired Kroger outlets. The first remodeling of an existing A&P store into a Futurestore occurred in New Jersey in 1985.[37]
This concept expanded into southeastern US locations and A&P’s traditional Mid-Atlantic markets (operating under the Super Fresh banner in Philadelphia), though by the late 1980s all Futurestores had either been rebranded or shuttered.
Similar to its counterpart Sav-A-Center stores, Futurestores were distinguished by their unique features and color palette: black and white interiors contrasted with Sav-A-Center’s green and white scheme. Many Futurestores incorporated glass atrium entrances and utilized signage featuring pictograms, reminiscent of European supermarket styles.
Futurestores typically provided advanced gourmet departments and electronic services tailored to upscale neighborhoods. Their offerings emphasized specialty foods more than traditional A&P or Sav-A-Center outlets. Additionally, these stores featured more contemporary fixtures and equipment compared to other A&P locations at that time.
Due to limited adoption for broad rollout, A&P gradually retired the Futurestore brand by closing some locations and converting others into either standard A&P or Sav-A-Center stores. Consumer feedback indicated that Futurestore lacked the distinctive flair of other upscale grocers who not only offered gourmet products but also prepared and delivered meals.[38] Nevertheless, unlike Sav-A-Centers which were rebranded as A&P Food Markets in the 1990s, Futurestore interiors remained largely unchanged during this transition.
Pharmacies
During the mid-1990s, A&P expanded its operations to include pharmacies, focusing on developing stores ranging from 45,000 to 65,000 square feet in size.
International ventures
In the early 1980s, plans were discussed for A&P to establish a store in Saudi Arabia. According to A&P Preservation in March 2018, A&P did open a location in Riyadh. Petra Czech, a representative from Tengelmann, indicated that the brand name was licensed to local Saudi operators. It is believed that this store was eventually rebranded under the Saudi version of Safeway.
Store names
For the majority of its existence, A&P operated primarily under its own name. However, during the leadership periods of Scott and Wood, the company began creating separate chains or retaining the original names of acquired businesses. Below is a list of A&P’s retail brands operating under alternate names:
- Family Mart: Launched in 1977, this chain featured large grocery stores with pharmacies and was modeled after similar outlets developed by Skaggs-Albertson's, where Chairman Scott had previously worked. Initially thriving, within a decade Family Mart expanded to 28 locations across Alabama, Florida, Georgia, and the Carolinas. The 18 stores located in Florida were sold off in 1987, and all remaining Family Mart stores were closed by 1999.
- Plus: In Germany, Tengelmann operated numerous small-format stores under the Plus brand, focusing on low-cost and no-frills retailing. After acquiring a controlling interest in A&P, Tengelmann converted some smaller A&P outlets into Plus stores.
- Super Fresh: When A&P decided to shut down its Philadelphia division (covering Delaware, Maryland, and southern New Jersey) during the restructuring of 1981–82, union representatives proposed purchasing many of these locations. A&P agreed to this arrangement, resulting in a new labor contract that included profit-sharing and required these stores to operate under the new name Super Fresh. These outlets became profitable and by 1986 the Super Fresh brand extended into Washington D.C. and Virginia; the latter included Richmond-area Pantry Pride stores acquired by A&P in 1981. Super Fresh remained operational until A&P’s liquidation; subsequently, Key Food acquired the brand and relaunched it primarily around Newark rather than Philadelphia.
- Food Basics (US & CA): In response to record losses during the early 2000s recession affecting middle-class suburbs such as Paterson, North Bergen, and Glassboro in New Jersey, A&P transformed these struggling stores into no-frills supermarkets named Food Basics. These outlets offered essential groceries at reduced prices and carried both America's Choice and Food Basics private labels alongside conventional brands found in other A&P stores. By 2010, Food Basics operated over a dozen locations in economically challenged New Jersey cities and several former Super Fresh stores converted in central Philadelphia. Service departments were limited to delis only; other departments like meat, seafood, and bakery products were supplied from external facilities. This strategy reduced labor costs by more than half by eliminating higher-paying roles such as butchers and bakers while increasing positions for stock clerks and cashiers.
- Kohl's Food Stores: Following the closure of its substantial Chicago division in 1982, A&P acquired Wisconsin-based Kohl's Food Stores in 1983. Originally opened in 1946 and expanding into department stores during the 1960s, Kohl's was purchased by British American Tobacco in 1972 before being sold off to A&P about ten years later. Kohl's Food Stores were closed by A&P in 2003.
- Dominion (Canada): Acquired by A&P in 1985, Dominion consisted of 92 supermarkets along with two warehouses and an office complex. The chain was divested in 2005.
- Ultra Food & Drug / Miracle Mart / The Barn Markets (Canada): These Canadian supermarket chains were owned by A&P until their phase-out in the early 2000s; their store formats mirrored those of other A&P operations.
- The Food Emporium: Also purchased in 1985, this New York City-based chain had started as Daitch Crystal Dairies in 1919 before becoming Shopwell Supermarkets. At its peak in 1962 it operated 103 stores. Facing closures during the late '70s and early '80s, it rebranded as The Food Emporium targeting upscale neighborhoods. The brand remained active through A&P’s liquidation; Key Food acquired The Food Emporium along with four stores and continues using the brand today.
- Waldbaum's: Acquired in 1986, Waldbaum's was founded in New York City in 1904 with its first supermarket opening in 1951. The chain expanded into Nassau and Suffolk counties as well as Connecticut and Massachusetts. By the early 2000s, A&P managed around eighty Waldbaum's locations primarily on Long Island. Many remained open when liquidation began.
- Farmer Jack: This Detroit-based supermarket chain with seventy-nine locations was acquired by A&P in 1989. Founded in 1924 and renamed Borman's during the mid-1950s before reverting to Farmer Jack in the late '60s, it suffered financial setbacks due to a prolonged strike in 1987 leading to its sale to A&P for $76 million. Within five years post-acquisition, all Detroit-area A&Ps were converted into Farmer Jack stores along with some locations in Virginia and South Carolina. By 2007 all Farmer Jack outlets had been sold or shuttered.
- Sav-A-Center: Initially launched as a twenty-store chain serving greater New Orleans with additional locations throughout Louisiana and two stores in Mississippi. The division also included three conventional A&P outlets including one small corner grocery operating since 1931 in New Orleans' French Quarter. By August 2005 Sav-A-Center mainly served Baton Rouge, New Orleans metro areas, and Mississippi Gulf Coast regions. Many stores sustained damage from Hurricane Katrina; twenty-one reopened within months while two others resumed after renovations; five were permanently closed due to severe destruction. In April 2007 Sav-A-Center withdrew from Baton Rouge; by May it announced plans to exit New Orleans entirely seeking buyers for its remaining twenty stores. The decision focused on concentrating resources on Northeast operations where most stores were located. In September 2007 local chain Rouses purchased sixteen Sav-A-Center locations including Mississippi outlets and the French Quarter store; one store was sold to competitor Breaux Mart while others were closed.
- Pathmark: This prominent New York metropolitan area chain was one of A&P’s main rivals prior to its acquisition in 2007. Originally established as Supermarkets General within ShopRite's Wakefern cooperative in 1956, it separated from ShopRite in 1968 converting its eighty-one stores to Pathmark branding. By 1977 Pathmark began constructing larger format stores with pharmacy services. To fend off a hostile takeover attempt in 1987 management executed a $2.7 billion leveraged buyout resulting in heavy debt obligations. After filing for bankruptcy protection in 2000 and reorganizing under Yucaipa Holding which acquired a forty percent stake for $150 million, Pathmark operated one hundred forty-one stores valued at $634 million at acquisition time by A&P. Many Pathmark supermarkets remained open when A&P commenced liquidation; subsequently the brand was sold to Foodtown. In April 2019 Allegiance Retail Services revived Pathmark with a new store opening located in Brooklyn’s East Flatbush neighborhood.
Private brands
At its inception, A&P operated in a market where food items were typically sold in bulk without branding. The company was a pioneer in marketing packaged branded foods, launching its first branded product, "Thea-Necter" tea, in 1870. The "A&P" name appeared on baking powder containers starting in 1885. During the 1880s, the coffee line was branded as "Eight-O'Clock." When A&P relocated its headquarters to Jersey City, New Jersey in 1907, it incorporated bakery and coffee roasting operations into its business model.
A&P's transformation into one of the nation's leading food manufacturers was significantly influenced by a 1915 court ruling during the Cream of Wheat case, which affirmed a manufacturer's authority to set retail prices. To maintain competitive pricing, A&P focused heavily on developing private label merchandise. By 1962, the company managed 67 manufacturing plants before centralizing many operations within the expansive Horseheads facility, spanning 1.5 million square feet and recognized as the largest single-roof food production plant globally. John Kenneth Galbraith highlighted A&P's manufacturing approach in his 1952 work American Capitalism as a prime illustration of countervailing power, offering an effective alternative to government-imposed price controls.
As late as 1977, private label products accounted for one-quarter of A&P's total sales, with over 40% of that segment comprising goods produced by A&P itself. That year, the manufacturing division reported $750 million in sales from 23 plants—an output that would have placed it around number 350 on the Fortune 500 list if ranked independently.
Before establishing a unified Manufacturing Group in 1975, A&P's production was segmented across four distinct divisions:
- Bakery (including Grandmother's, Marvel, and Jane Parker): Initially limited to a single bakery in Jersey City until 1923, this division rapidly expanded to become the largest bakery operation in the United States with 37 facilities. By 1977, this number had decreased to seven; the bakery division was ultimately shuttered during restructuring efforts between 1981 and 1982. Although a Canadian baker continued producing Jane Parker cakes afterward, it declared bankruptcy in 2014. Subsequently, Alex and Chris Ronacher acquired the rights in 2016.
- Coffee (brands such as Eight O'Clock, Bokar, Red Circle): In 1919, A&P consolidated its coffee business under the "American Coffee Company," establishing dedicated roasting and grinding plants. By 1977, three coffee roasting facilities and one plant for canned coffee were operational. This segment survived the early-1980s restructuring and remained under A&P ownership until it was sold in 2003.
- Dairy: Originating from A&P’s acquisition of White House Milk Company of West Bend, Wisconsin in 1922 to produce evaporated milk—a product necessary due to limited refrigeration options for fresh milk—this division operated three dairies along with cheese and dry milk plants by 1977.
- Grocery (including Quaker Maid, Ann Page, Our Own Tea): Beginning with a vegetable cannery opened in 1907 and expanding after World War I through acquisitions of Alaskan canneries amid falling salmon prices, this division grew to produce an extensive variety of items such as canned goods, frozen foods, nuts, tea bags, pasta, peanut butter, detergents, insecticides, gelatin products, paper goods, and confectionery. Additionally, A&P maintained its own printing facility for labels and packaging across its manufacturing units as well as promotional materials for stores. By 1977, operations included the Horseheads plant along with six smaller production sites.
During the mid-1990s, A&P introduced a streamlined store brand named America's Choice; this brand persisted until the company's closure in 2015. In Canada, this brand was marketed under "Master Choice," which also served as a label for gourmet products within U.S. stores.
Between 2008 and 2009, A&P expanded its private label portfolio by launching environmentally conscious Green Way products alongside gourmet offerings under Food Emporium Trading Company and budget-friendly items through Food Basics.
Woman's Day
The publication known today as Woman's Day originated in 1931 when A&P distributed it as a complimentary leaflet featuring menus. By 1937, it evolved into a magazine available for purchase exclusively at A&P outlets, priced at five cents. Its readership expanded significantly, reaching 3 million by 1944 and growing to 4 million by 1958, the year it was acquired by Fawcett Publications.
In arts, entertainment, and media
- The opening sequence of the film Breaking Away features Dennis Quaid singing about wanting to be buried in an A&P parking lot.
- In season 4, episode 3 of Boardwalk Empire, characters Gillian Darmody (portrayed by Gretchen Mol) and Roy Phillips dine with A&P executives.
- In Big Eyes, directed by Tim Burton, Margaret Keane visits an A&P store where her artwork is displayed for sale.
- The supermarket is referenced in the song "Garbage Dump" by Charles Manson.
- Within the Starz series Gaslit, a character tells Martha Mitchell (played by Julia Roberts) that they are going to the A&P.
- The 1981 track "Christmas Wrapping" by The Waitresses includes the lyric "A&P has provided me with the world's smallest turkey."
- From 1924 through 1936, A&P sponsored the musical radio program The A&P Gypsies.
- A&P also maintained a longstanding sponsorship of Kate Smith's radio show; Smith became a prominent spokesperson for A&P, frequently appearing at store openings nationwide.
- In the 1951 Popeye cartoon "Vacation With Play," two squirrels deliver a sped-up radio commercial for Jane Parker's Donuts—A&P’s own brand of baked goods including doughnuts and cookies—audible only when the cartoon is slowed down.
- The setting for John Updike's 1961 short story "A&P" is an A&P store.
- In 2013, A&P collaborated with the Lifetime Network to create the food-reality television series Supermarket Superstar.
- The supermarket is mentioned in the 1988 film Scrooged, where Bill Murray’s character remarks, "Look up A&P. If it's not under 'A', then look under 'P'," referring to turkeys intended for a shelter.
- Early in the 1989 movie Born on the Fourth of July, Ron Kovic works at an A&P store managed by his father and invites his high school crush to prom while inside the supermarket.
- The 2001 book Good to Great analyzes A&P alongside its competitor Kroger.
- In 2007, brothers Mark and Matt D'Avella filmed their rap music video "Produce Paradise" at an A&P location. The chain later resolved a lawsuit related to this video out of court.
- The 2009 episode "The Arrangements" from Mad Men features a scene where a police officer informs Betty Draper that her father died after collapsing in line at an A&P store.
- In season 2, episode "Wannabe" of Without a Trace, Emily Levine comments about her friend Brandee’s mother, saying she does not work at an A&P checkout counter.
- The 2022 film adaptation of Don DeLillo's novel White Noise prominently features A&P as the preferred grocery store for characters, notably during the closing credits.
- In season five’s episode "Not Even Close... Encounters" of Psych, Lassiter’s "crap list" includes "Check out Girl @ the A&P," though this may be outdated since no A&P stores remained in California when the episode aired.
See also
- List of supermarket chains in the United States
- Retail apocalypse
- List of retailers affected by the retail apocalypse
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Citations
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- ↑ Walsh 1986, p. 143.
- ↑ Walsh 1986, pp. 245–246.
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Bibliography
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Further reading
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External links
- Official website at the Wayback Machine (archived 2012-09-26)
- Time magazine cover featuring John and George Hartford
- Photograph from the 1970s showing an A&P store in Towson, Maryland
- A&P section on Groceteria, offering a brief history of Futurestore along with a photo collection of former A&P locations and several Futurestores Archived May 9, 2008, at the Wayback Machine
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- Pages with reference errors
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- Pages with broken file links
- Commons category link from Wikidata
- Webarchive template wayback links
- The Great Atlantic & Pacific Tea Company
- Companies based in Bergen County, New Jersey
- Companies based in Manhattan
- Companies formerly listed on the New York Stock Exchange
- Retail companies established in 1859
- Retail companies disestablished in 2015
- Companies that filed for Chapter 11 bankruptcy in 2010
- Companies that filed for Chapter 11 bankruptcy in 2015
- Economy of the Northeastern United States
- Hartford family
- Montvale, New Jersey
- Supermarkets of the United States
- 1859 establishments in New York (state)
- 2015 disestablishments in New Jersey
- Defunct supermarkets of the United States
- Defunct companies based in New Jersey
- Competition law