Gristedes
| Company type | Private |
|---|---|
| Industry | Supermarket |
| Founded | 1891 in Manhattan, New York City, United States |
| Founder | Charles and Diedrich Gristede |
| Headquarters | New York City , United States |
Area served | Primarily New York City (Manhattan, Brooklyn, Bronx), formerly suburban areas and New Jersey |
Key people | John Catsimatidis (owner and chairman) |
| Products | Grocery items, gourmet products, deli counters, bakeries, pharmacy services |
| Owner | John Catsimatidis |
Number of employees | 1500 (2000) |
| Website | www |
Gristedes is a supermarket chain headquartered in New York City, primarily catering to urban clientele.
Gristede Brothers: 1891–1987
German immigrant siblings Charles and Diedrich Gristede launched their inaugural grocery store illuminated by gaslight in Manhattan in 1891. By 1896, they had extended their reach to Harlem and, during the 1920s, further expanded into Westchester County and Connecticut. The network grew to encompass 141 locations throughout Manhattan, the Bronx, Westchester, and Connecticut by 1948. The first store on Long Island opened in 1956.
The Gristede Brothers concentrated on Manhattan’s upscale East Side market, specializing in gourmet items and high-quality service, achieving annual revenues near $60 million with 115 stores by 1968. That year, Southland Corporation, which owns 7-Eleven, acquired the chain for $11.5 million in stock but maintained the existing management team.
By 1977, Gristede's operated approximately 120 stores ranging between 6,000 and 11,000 square feet, offering between 7,000 and 8,000 specialty gourmet products. Yet, in the early 1980s, profitability was strained due to increasing expenses, limited store sizes, and intense competition. The number of outlets declined from 100 in 1980 to 84 by 1983 as the company restructured its focus primarily on Manhattan locations.
In 1985, Gristede's operated a combination of supermarkets and smaller service stores with sales around $105 million. The following year, Southland sold both Gristede's and Charles & Co. stores to Red Apple Co., owned by John A. Catsimatidis, for roughly $50 million. This acquisition made Red Apple the largest supermarket operator in New York City while preserving Gristede's brand identity. By 1987, Red Apple had renovated several Gristede’s outlets by adding deli counters, bakeries, and premium food sections while discontinuing Charles & Co. stores.
Sloan's Supermarkets: 1956–1997
Max Sloan, a Bronx native raised in foster care, began his career in produce with a $500 store in 1940 that evolved into the Orange Grove chain. Together with partner Lou Meyer, Sloan expanded into wholesale produce distribution serving grocery stores across Manhattan and the Bronx. Their entry into the supermarket business came in 1956 with two Manhattan locations. By 1973, Sloan's operated 25 stores mainly on Manhattan’s West Side and acquired seven additional outlets from Bohack Corporation, reaching annual sales of $42 million.
Following Meyer's passing in 1969 and Sloan’s retirement in 1977, leadership transitioned to Jules Rose, Sloan’s son-in-law. By 1982, Sloan's Supermarkets Inc. had grown to operate 42 stores with estimated sales totaling $150 million. The company’s strategy emphasized high-margin categories such as meat, frozen foods, produce, and gourmet selections. Sloan's catered to Manhattan’s diverse population by customizing product assortments—offering Goya brands for Hispanic consumers and kosher products for Orthodox Jewish customers—and featured international foods near the United Nations headquarters. Locations in affluent neighborhoods focused on frozen and natural food items.
By 1990, Sloan's managed 38 stores but faced difficulties; its reputation for quality diminished as competitors modernized their operations. Internal disputes among the four principal owners impeded effective decision-making despite holding a substantial market share of about 20% within Manhattan’s grocery sector. Between 1990 and 1992, several Sloan's stores were sold off to Red Apple Group.
In 1993, three of Sloan's owners were indicted on federal charges related to coupon fraud involving $3.5 million, placing ownership of multiple stores at risk. These individuals were ultimately incarcerated. Despite this turmoil, Red Apple purchased the remaining eleven Sloan's supermarkets for $8.8 million plus accounts payable through Designcraft, Inc., a publicly traded shell company controlled by John Catsimatidis. Subsequently, federal charges against Sloan's were dismissed.
This acquisition increased Red Apple's supermarket holdings in New York City to seventy-five stores. In 1994 the Federal Trade Commission raised antitrust concerns since Red Apple—including Gristede's and Sloan's—served approximately 37% of Manhattan’s grocery shoppers. Catsimatidis agreed to divest six stores but incurred a $600,000 fine in 1997 due to non-compliance.
During this timeframe, the Red Apple brand faded significantly as many outlets were either sold or rebranded under Gristede's or Sloan's identities. In 1995 Sloan's purchased three more supermarkets from a Red Apple subsidiary for $5 million plus inventory costs and expanded further with a new supermarket along with a Brooklyn-based health and beauty store in 1996.
Gristede's Sloan's: 1997–1999
In 1997, Sloan's Supermarkets purchased 29 outlets from Red Apple, including 19 Gristede's and 10 Sloan's stores, along with a produce distribution facility, for $36 million in stock and $4 million in assumed liabilities. Following this acquisition, the company was rebranded as Gristede's Sloan's, Inc. During fiscal year 1998, the company expanded by acquiring an additional supermarket from an affiliate of Catsimatidis and invested $10 million to renovate ten stores, while simultaneously closing four locations and merging two others. That year, sales totaled $157.5 million, with a net loss of $288,339 and long-term debt amounting to $21.6 million. By February 1999, CEO John Catsimatidis held a controlling interest of 91% in the firm.
Out of the 40 stores operating in 1998, 35 were situated in Manhattan, with the remainder located in Brooklyn, Westchester County, and Long Island. Store footprints varied between 3,200 and 23,000 square feet, averaging around 9,000 square feet; all properties were leased. The Bronx-based City Produce Operating Corp. supplied these supermarkets with groceries and fresh produce for both retail and wholesale customers.
The merchandise assortment at Gristede's Sloan's encompassed a wide range of products such as national brands and private-label items across fresh meats, produce, dairy, baked goods, frozen foods, deli selections, and gourmet offerings. Non-food merchandise included cigarettes, soaps, paper goods, and health-related products. The company operated an in-store pharmacy at one location and offered services including check cashing and grocery delivery for a fee. Stores maintained extended hours of operation—up to 16 hours daily throughout the week—with at least one store operating around the clock.
For fiscal year 1999, plans involved renovating twelve stores and launching two additional supermarkets along with four pharmacies. By May of that year, four out of eleven Sloan's stores had been converted to the Gristede's brand name; the remainder were scheduled for rebranding by year-end. Catsimatidis highlighted the superior marketing advantages associated with the Gristede's name.
Expanding for the new millennium
In the late 1990s, Gristede's introduced The Café lunch counters at two Manhattan locations offering hot dogs, sandwiches, and ready-to-eat meals. In 1999, one Café location experimented with a sushi bar through a partnership with HMC Sushi from New Jersey.
That same year saw the installation of pharmacies licensed from Legend Pharmacies within two Gristede's stores. The company publicized new store openings and renovations through special editions of the New York Daily News distributed directly to customers.
By the year 2000, Gristede's employed approximately 1,500 individuals and reported sales of $216.3 million while reducing losses to $191,000 from a previous deficit of $2.9 million. Sales further increased to $230 million in 2001 with a net profit of $275,000.
In 2002, Gristede's purchased three Food Emporium locations from A&P for $5.5 million and reopened them under its own brand while simultaneously developing larger "Mega Stores" averaging about 20,000 square feet—almost twice the size of their traditional outlets.
After being absent for twenty years, Gristede's returned to New Jersey in 2002 by opening over ten supermarkets. Catsimatidis targeted this market due to its resemblance to Kings Super Markets' customer demographic; however, attempts to acquire Kings were unsuccessful because of financing difficulties.
In November 2002, Gristede's unveiled its first Bronx store aimed at serving expanding Latino communities following prior success in Washington Heights.
To advance its online presence, Gristede's launched XpressGrocer.com in December 2003 and began fulfilling grocery orders placed through Amazon.com nationwide by November 2004.
Fiscal year 2003 saw sales rise to $279.69 million but resulted in an $11.6 million net loss partly attributed to opening seven new stores and losses incurred during the August blackout which affected perishable inventory.
In 2004, Chairman John Catsimatidis—who owned over ninety percent of the company—took Gristede's private due to regulatory complexities and limited investor interest in the relatively small enterprise valued at $16 million.
Stores
The majority of Gristedes outlets are situated in Manhattan, with a former store on Roosevelt Island that operated until 2020. Additionally, the brand maintains a footprint in Brooklyn. In the past, the company ran locations in suburban areas including Somers, Tenafly (NJ), Southampton, Port Jefferson, Locust Valley, Scarsdale, and Port Chester; however, these stores have been shuttered over time as part of strategic adjustments and changing market conditions.