Pathmark

Pathmark
Company type	Subsidiary
Industry	Supermarket
Founded	1968
Founder	Supermarkets General
Headquarters	Iselin, New Jersey, United States
Area served	Northeastern United States
Products	Groceries, pharmacy services
Owner	Allegiance Retail Services
Parent	Allegiance Retail Services

Pathmark is a supermarket chain owned by Allegiance Retail Services, a retailers’ cooperative based in Iselin, New Jersey, USA. Since 2019, Pathmark has maintained a single store located in East Flatbush, Brooklyn, New York.

Established in 1968 by Supermarkets General, which departed from the Wakefern cooperative to compete independently, Pathmark expanded to become a major supermarket chain throughout the northeastern United States. In 2007, it was acquired by competitor A&P. Prior to ceasing operations in 2015, Pathmark ran stores across New York, New Jersey, Connecticut, Pennsylvania, Delaware, and Maryland.

In 2007, Supermarket News listed Pathmark as the 31st largest food retailer in North America based on estimated 2006 sales of $4.1 billion. According to 2005 revenue figures, it ranked as the 67th largest retailer in the United States.

Pathmark earned considerable market visibility through enduring advertising campaigns featuring spokespersons like actor James Karen and produce specialist Peter "Produce Pete" Napolitano. After A&P filed for Chapter 11 bankruptcy in 2015, Pathmark locations were liquidated.

Allegiance Retail Services purchased the Pathmark brand and intellectual property in 2016 with the intention of reviving the company. The first new store under this ownership opened in Brooklyn in April 2019, with further expansion contingent upon performance evaluation.

Supermarkets General and Pathmark

Pathmark’s origins trace back to Wakefern Food Corporation, the parent company of ShopRite. In 1956, a subgroup named Supermarkets Operating Co. was established by founders Alex Aidekman, Herb Brody, and Milt Perlmutter. Initially managing ShopRite outlets, the company expanded into non-food retail by acquiring Crown Drugs in 1963.

In 1966, Supermarkets Operating Co. merged with General Super Markets to create Supermarkets General Corporation under Perlmutter’s leadership. At that time, it operated 75 ShopRite stores across the Northeast with annual sales approximating $420 million (in 1966 dollars). The business model emphasized large-format stores situated in densely populated areas offering competitive prices on both national brands and private-label products.

To broaden its portfolio, Supermarkets General acquired Genung's Inc., which included Howland's and Steinbach department stores in 1967; Rickel home improvement centers in 1968; and Hochschild Kohn's department stores in 1969. In 1968, the company exited the Wakefern cooperative and rebranded its ShopRite locations as Pathmark. By 1969, Pathmark’s network of 81 supermarkets accounted for roughly 85% of Supermarkets General’s total sales and approximately 80% of its profits.

1970s

By October 1971, Pathmark managed 91 supermarkets along with associated gas stations and drugstores. In 1972, it became the first supermarket chain in the New York area to operate many stores on a 24-hour basis. By early 1973, around 90 of its 99 stores were open around the clock. That same year, to combat inflationary pressures, Pathmark implemented a price freeze on hundreds of items.

In September 1974, Pathmark introduced barcode scanning technology at its Middlesex Mall location while operating a total of 104 stores. Despite these technological advancements, profit margins fell to as low as 0.18%.

In 1977, Pathmark opened its inaugural Super Center—a large-format store measuring approximately 50,000 square feet—in Jericho, Long Island. This concept combined grocery offerings with health products, appliances, and videotape rentals, marking a strategic pivot toward expansive discount retail formats. Additionally, that year saw a successful partnership with Bedford-Stuyvesant Restoration Corporation to establish a community grocery store serving Brooklyn’s Bed-Stuy neighborhood.

Following the passing of Perlmutter in 1978, Louis Lowenstein assumed the role of CEO but was succeeded by vice chairman Herb Brody in 1979 amid an era marked by economic stagnation and leadership changes.

1980s

In February 1982, Leonard Lieberman assumed the roles of president and COO at Supermarkets General Corporation, while Herbert Brody took on the positions of vice chairman and CEO. The corporation intended to purchase Pantry Pride, which operated 150 grocery stores across Florida, Georgia, and Virginia; however, this acquisition fell through due to lawsuits filed by shareholders.

Pathmark recorded sales of $2.8 billion in 1982, placing it as the tenth-largest supermarket chain nationwide. The following year, Pathmark debuted its first superstore in Manhattan—a 42,600-square-foot location near Chinatown. Over 100 branches featured pharmacy services, and 27 stores housed Barnes & Noble bookstores. Pathmark was the primary revenue generator for Supermarkets General, accounting for 87% of total sales and 83% of operating earnings.

In January 1984, a labor strike involving 7,000 butchers and deli workers at Pathmark and other grocery chains lasted 26 days before a tentative settlement was reached. Later that July, Supermarkets General expanded by acquiring Purity Supreme, which added 28 supermarkets and 14 Heartland warehouse outlets to its portfolio. By 1985, Pathmark commanded a 12.5% market share in sales within the New York metropolitan region.

To fend off a takeover attempt by Dart Group Corp., Supermarkets General agreed in April 1987 to a $1.58 billion buyout by Merrill Lynch Capital Markets Inc. alongside senior executives. Kenneth Peskin succeeded Lieberman as chairman and CEO. To alleviate debt burdens, the company divested 25 Heartland and Pharmacity drugstores to Melville Corporation, operator of CVS.

Sales for fiscal year 1989 reached $6 billion; however, the Rickel subsidiary underperformed, and Pathmark dropped to third place in New York with a total of 142 stores. Numerous outlets faced criticism for outdated facilities and inadequate upkeep. Merrill Lynch replaced Peskin with Jack Futterman as CEO.

In November 1989, Robert E. Wunderle—chief economist and vice president of public affairs—was found murdered in an unsolved case speculated to be connected to union negotiations.

1990s

By 1991, Pathmark operated a network of 146 supermarkets along with 32 drugstores. Supermarkets General announced plans to invest $385 million over three years to grow Pathmark’s grocery division. That same year saw the divestiture of Purity Supreme. In 1992, Pathmark launched the Pathmark 2000 concept: stores reaching up to 64,000 square feet offering produce, seafood, bakery items, health and beauty products, video rentals, film processing services, UPS shipping options, and amenities designed for families.

Although an initial public offering was planned in 1993, it was subsequently canceled. The company divested Rickel Home Centers along with its distribution and transportation units. In October of that year, Supermarkets General Corp. rebranded itself as Pathmark Stores, Inc.

In 1994, Pathmark broadened its private-label product range by introducing the premium Pathmark Preferred line alongside its mid-tier Pathmark brand and budget No Frills label; private-label goods represented approximately 24% of total sales. The company also opened its third Super Drug discount outlet but shuttered seven Pennsylvania stores following disputes over union wages.

By 1995, there were 27 operational Pathmark 2000 stores. The company introduced Chef's Creations—a selection of freshly prepared entrees and salads crafted daily by chefs. That year, Drug Topics awarded Pathmark "Pharmacy Chain of the Year," reflecting pharmacy sales that made up nearly 7% of overall volume.

In May 1995, Purity Supreme supermarkets along with Li'l Peach convenience stores were sold to Stop & Shop. The following month, Pathmark sold 30 out of its 36 standalone drugstores to Rite Aid for $60 million as part of a strategic shift toward emphasizing in-store pharmacies. By December, all remaining Super Drug stores in Connecticut were closed; by 1998, Pathmark exited the New England market entirely by closing its last two Connecticut supermarkets.

During 1996, Pathmark reorganized into five marketing regions covering New York City/Connecticut, Long Island, northern and central New Jersey, and Greater Philadelphia. CEO Jack Futterman and president Anthony Cuti departed; James Donald—previously with Safeway and Walmart—assumed the roles of CEO and chairman later that year while reducing executive personnel by one-third. During this period, Pathmark introduced Chef's Creations To Go—freshly packaged meals designed for convenient takeout.

Construction commenced in August 1997 on a $14.5 million supermarket located in East Harlem—the largest store in Harlem—with features including a pharmacy and an on-site Chase bank branch; it opened in April 1999. Additional plans were underway for a significant Bronx store situated on a ten-acre site near Crotona Park.

For fiscal year ending February 1997, the parent company reported a net loss of $20 million on $3.71 billion in sales; this included charges related to selling twelve unprofitable stores primarily located in southern New Jersey. Same-store sales declined by 2.8%, reflecting heightened competition.

In October 1997, C&S Wholesale Grocers assumed distribution responsibilities from Pathmark’s Woodbridge facility and became the principal supplier for groceries and perishables across the chain. This agreement covered frozen foods, dry groceries, general merchandise distribution centers throughout New Jersey as well as delicatessen processing and banana ripening operations. The $50 million contract contributed to reducing Pathmark’s debt load from $1.47 billion.

Unsuccessful Ahold Acquisition and Bankruptcy Proceedings

In March 1999, the Dutch retailer Royal Ahold, owner of Edwards supermarkets in New York, agreed to purchase Pathmark for $1.75 billion. The arrangement planned to transform Edwards locations into Pathmark stores. However, the Federal Trade Commission (FTC) denied Ahold's proposal to divest stores with overlapping markets, citing antitrust concerns regarding competition within New York. As a result, Ahold withdrew from the acquisition and rebranded Edwards outlets under the Stop & Shop name.

By September 1999, Pathmark transitioned from offering fresh-cut meats to selling prepackaged veal, lamb, and pork products. Later that year in November, the company introduced its inaugural smaller-scale community store in the Kew Gardens neighborhood of Queens.

With FTC restrictions preventing growth through acquisitions, Pathmark filed for Chapter 11 bankruptcy protection in July 2000 but successfully restructured and exited bankruptcy by mid-2001. In February 2001, Pathmark expanded by acquiring six Grand Union stores after C&S Wholesale Grocers had purchased that chain. Then in March 2002, Stop & Shop acquired 26 Big V Supermarkets and sold nine of those locations to Pathmark.

In March 2005, investment firm Yucaipa Companies invested $150 million to obtain a 40% ownership stake in Pathmark, signaling renewed confidence from investors.

By February 2007, Pathmark collaborated with Wild Oats Markets to introduce roughly 150 organic and natural Wild Oats private-label items across its 141 stores. The product range included Italian sodas, balsamic vinegar, organic fruit spreads, and flatbread crackers. This partnership responded to increasing consumer preference for organic products and broadened Pathmark’s offerings.

A&P Acquisition and Introduction of Pathmark Sav-A-Center

In March 2007, rival retailer The Great Atlantic & Pacific Tea Company (A&P) completed a $678.6 million acquisition of Pathmark. The transaction required divesting five Waldbaum's stores along with one Pathmark location. While both brands continued operating independently at the store level, purchasing and administrative operations were consolidated; employee roles within stores remained unchanged. In June 2008, A&P sold Pathmark’s headquarters located in Carteret, New Jersey. The merger was formally concluded in December 2007.

During spring 2008, Pathmark unveiled the "price impact" concept through the launch of the Pathmark Sav-A-Center brand at renovated stores in Irvington and South Edison, New Jersey. The Sav-A-Center name had prior usage within A&P’s portfolio, including a New Orleans-area chain sold off in 2007.

Following successful initial trials, A&P converted sixteen Pathmark Super Centers along with eight Philadelphia-area A&P Super Fresh outlets to operate under the Pathmark Sav-A-Center banner. This branding was also extended to Pathmark’s website and promotional materials as part of A&P's strategy to appeal to more price-conscious consumers.

In 2009, Pathmark closed its Randolph, New Jersey store while opening a new Sav-A-Center location in South Plainfield at a former A&P site. The North Plainfield store also ceased operations amid ongoing consolidation efforts. Simultaneously, A&P revamped its Super Center interiors to align with the Sav-A-Center branding as part of continuous initiatives to improve market positioning and operational effectiveness.

A&P bankruptcy proceedings and store shutdowns

In August 2010, A&P revealed plans to close 25 outlets, which included nine Pathmark stores located in New Jersey. On December 12, 2010, the company initiated Chapter 11 bankruptcy proceedings, reporting assets valued at $2.5 billion against liabilities totaling $3.2 billion. A&P successfully exited bankruptcy protection on March 13, 2012, restructuring its six supermarket divisions, including Pathmark, into private entities.

A Super Fresh store was launched in Philadelphia’s Northern Liberties neighborhood in August 2011, replacing a previously intended Pathmark location, reflecting diminished confidence in the Pathmark brand.

A tragic incident occurred at the Pathmark store in Old Bridge, New Jersey, in August 2012 when a shooting resulted in three fatalities.

By July 2013, there were indications that A&P was exploring options to sell the company following its bankruptcy emergence. Nevertheless, on July 19, 2015, A&P filed for Chapter 11 bankruptcy protection once again within a five-year span. The company promptly shut down 25 stores, including 16 Pathmark locations, while other stores were divested. By November 2015, all Pathmark outlets had either been closed or transferred to competitors such as Acme Markets, Stop & Shop, Key Food, and ShopRite.

Brand resurgence

In 2016, Allegiance Retail Services LLC acquired multiple stores along with the brand’s intellectual property. This firm undertook renovations and reopened the East Flatbush Pathmark store in April 2019 as part of a strategic effort to reinvigorate the brand in critical markets.

Slogans

Shop Pathmark, the store for value (1968–1978)
All Signs Point to Pathmark for One Stop Shopping (1978–1981)
You've got Pathmark. Who could ask for anything more? (1978–1981)
We're Pathmark, We're All-Ways There! (1981–1982)
Savings all over means savings over all (1982–1984)
You're the one who's number one (1984–1988)
Pathmark, More Value For Your Dollar (1988–1990)
Count on Pathmark For Savings That Count (1991–1994)
Pathmark, Your Place to Really Save (1993–1994)
Shop Smart, Pathmark Smart (1994–1997)
Pathmark, The way it should be! (1997–2000)
Pathmark, Take a Fresh Look (2000–2002)
Get a Little More at Pathmark (2002–2004)
Pathmark, It's about time (2004–2006)
Go Fresh. Go Local. (2006–2008)
Fresh For Less (2008)
Count On Pathmark When It Counts (2008–2009)
Pathmark! Save all over the place! (2009–2010)
Where the only prices are low prices. (2010–2011)
Your Store For Value! (2011)
Great Food. Great Value. (2011–2015)
We priced it right (April 2019 – Present)
Pathmark makes life easier. (January 2019 – Present)