ACME MARKETS TO ACQUIRE
80
A&P LOCATIONS?
80
A&P LOCATIONS?
This news just in from the New York Post. Thanks to Dave W. for posting it under the monthly discussions. I am continuing to enjoy summer vacation but will be posting any additional information
as it becomes available. You can check out the Post's article by clicking here. The Post is reporting that A&P will completely cease to exist after the bankruptcy. An article on SupermarketNews.com has A&P claiming the information in the Post is incorrect. You can jump to that article by clicking here.
Incredible! What a time to be an Acme fan, watching it decline and have a rebirth. If Acme even acquires half of that, it would repair store count damage from SuperValu.
ReplyDeleteCan we get a thumbs up/"like" option on this site (e.g., what Facebook and YouTube have) so I can like this comment? :) I agree 100%!
DeleteI want this to happen, but I also am dreading it. It would be the best thing I the world for ACME to take over the A&P stores, as it would get them a more stable presence and also probably get them back in the New York market. Also, the stores they take will be high-performance locations, as frankly that's the only way they have survived under A&P that long. I still don't want this to come to the loss of the nation's most famous food retailer. Also, this could cost a couple of classic ACME locations, as if a larger A&P is in town, they will most likely move there.
ReplyDeleteTHE stORE teams were told last friday, that Acme had aquired, all the remaining super fresh stores in Delaware. These stores would become ACMES.
ReplyDeleteToo bad many of those stores are dumps, they'll all have to be renovated...
DeleteI am very saddened about A&P's demise, although it is completely expected.
ReplyDeleteI honestly think that Acme would be biting off more than it can chew if it indeed is planning to open 80 new stores. Like A&P, Acme has tremendous trouble competing with Shoprite (on one end of the price spectrum) and the premium grocers. Opening 80 new stores will not solve that problem, and--in fact--may create a whole new problem if a lot of debt is needed to acquire this real estate. (One of the biggest reasons for A&P's bankruptcy is that it took on too much debt in order to acquire Pathmark.) We also don't know where these 80 locations are; if many of them are in Northern NJ, that poses additional problems, as Acme has a very tiny presence in that region now (meaning that the brand equity/loyalty that Acme once had in Northern NJ really doesn't exist anymore).
I am sorry to put a damper on what (at first) sounds like great news for Acme employees, shoppers, and fans. However, I am just trying to sound realistic.
I personally doubt Acme will be making much of a return to North Jersey but I kinda hope the do!
DeleteGood points Max--and I agree with Style--if they take stores, they will most likely cherry-pick some Philly-area stores in South/Central Jersey, PA and DE. Even some of those stores might be a big mistake. SuperFresh/Pathmark operate in a lot of legacy inner-ring urban areas (like Aramingo Ave, Cottman, Franklin Mills ...and most of NE Philly) ...and If A&P can't make money there...not sure how Acme will. Their price-points are not that far from each other. But there are a few gems, such as the Delaware Ave SuperFresh, where Acme would do fabulously.
DeleteThe NYPost is only a notch above the National Enquirer, so none of this may happen.
There is still a big question about unions. If a union chain like Acme takes over these stores, they would most likely honor the staff's contracts--which would greatly hinder Acme's ability to make money...so i would be surprised if we see more than 20 stores.
Hi, If Acme does buy these stores they will be automatically covered by union contracts that exist in all parts of New Jersey and Delaware. Even if Acme has withdrawn from and area the contract would still be in effect. Safeway left Delaware in the mid eighties only to return twenty years later as a non union entity. The union sued and the stores became local twenty seven. How would Acme make money? Well they would clean up the stores, restock the stores, upgrade the meat to choice, establish Butcher Blocks and run aggressive ads. This is the same policy that has seen Acme store sales increase an average of Seven percent from last year. A@P same store sales are down 10 percent and even Walmart same sales are down from last year. Also keep in mind, that Acme would more then likely keep the department managers, cutters and store management, Where in the world would they find that many skilled people to run that many stores? These folks are and asset not just a cost. Upper management that sucked the life out of A@P destroyed that chain not the folks at store level. Walmart s main problem is out of stock s their inability to handle perishables. This can be traced to low payed poorly trained help. Yesterdays toy manager is todays meat manager or Produce or Deli manager is Walmarts way. Guess what, perishable food managers take skill and knowledge.
DeleteI understand what you are saying, but IMHO, most of the same unfortunate history and corporate decisions that have caused A&P stores to be high-priced, unpleasant to shop and which have created a general apathy and malaise amongst the employees--have also afflicted Acme. I actually see the 2 chains as victims of the same types of corporate issues. A&P already sells USDA choice meats (at least in my A&P's in Monclair and Little Falls) Acme is going to run aggressive ads? You don't state where you are getting those same-store sales figures from, but if Acme had the ability to reel them in, as you suggest, I don't believe they would be in the situation they have been in over the last decade. From what I have seen and read on the blog, the only places that Acme is able to be successful are those places where it faces little-to-no competition, such as the Jersey Shore, Delaware and Eastern shore of Maryland. I hope you are right--and they are able to make a go of it...but I remain skeptical.
DeleteI can confirm one of the figures… Acme’s same store sales increased 7% and were actually trending toward 10% after the first year of Albertsons's ownership. It was reported on SupermarketNews.com but the article was locked from non-subscribers which is why I never posted it on the blog.
DeleteAcme7124 here...
ReplyDeleteI imagine that most of the locations would be in northern NJ. Seems to me those are the stores Acme could use to solidify their presence in the state, as well as stores along the shore (like maybe a few that they gave up years ago?) Does A&P have much in the Philly area that Acme would want? Can't see them making a move into New York, and something tells me ShopRite and Stop & Shop would want many of those. This could get interesting BUT... let's wait and see. How many times have we heard rumors of Acme expanding through acquisitions that don't happen?
All Acme has to do to be profitable in North Jersey is simply beat Stop @ Shop to finish number two to Shop Rite. They beat Super G who operate in the same business unit as Stop and shop on and every day basis in Delaware and Maryland. They will do it with better meat cut at store level and with Butcher Blocks which sell more King Crabs and shrimp then any one including Shop Rite in the Philadelphia market. Acme also runs extremely aggressive ads and should be able to take on a poor competitor as Stop & Shop.
ReplyDeleteI do kind of think that Acme shouldn't do more than a dozen. When Dominick's closed up shop, Jewel-Osco did take a number of them, but they were in good shape. A&P not so much. We're also seeing the beginning of the end of Haggen's rapid (IMO always ill-conceived) expansion from a small northwestern grocer to one going down the West Coast to Arizona, what with them cutting hours and all.
ReplyDeleteI can also see that Acme wants to make money at all, they should totally close the stores and liquidate the old inventory, clean it up, hire new people, and start new, instead of dragging behind union luggage and the same employees from the old stores.
Really, I think that any money Albertsons Cos. wants to pursue in this would be best spent on a small portion of stores, with most of it going toward rebuilding the private labels and integrating with Safeway.
"rebuilding the private labels and integrating with Safeway."
DeleteThis is already happening. Have you been in an ACME lately? Safeway brand packaging is currently being redesigned in preparation of being rolled out to all banners.
On the other hand, when thinking about the A&P stores in northern NJ and into NY (and the couple they still have in CT) is to remember that the parent company also owns the Shaw's stores in New England, so this could be kind of a "connection" between the two chains.
ReplyDeleteNot to mention that at least a few of the NY stores (I can think of 3 or 4 at the moment) operate in towns with little if any other supermarket choices nearby (and there may be at least some in Northern NJ as well) which would seem to make those stores more valuable to anyone shopping for them.
Went to a a&p owned store, amd got some old branded america choice items. It is such an honor to aquire 80 locations, but it sucks to be a&p
ReplyDeleteHi, Kinsley's ShopRite is in negotiations to buy the Pathmark née Super Fresh in Walnutport, Poconos
ReplyDeleteIt will be interesting to see if Acme decides to re-enter the northern New Jersey market, or if these supposed 80 locations are in Delaware, southern New Jersey, Philadelphia, etc.
ReplyDeleteIt would be a bold move to go back up north, but I think that the new Albertson's would be in a better position to do so than SuperValu would have been.
Nobody's going to unseat ShopRite as #1, but there is plenty of other business to be had. But then again, Wegmans is moving in with a new store in Morris County and a future store in A&P's backyard - Montvale.
It will be interesting to see what A&P finally has to say when they do come out and address the articles and rumors.
I was trying to figure that out... if, in fact, they acquire 80 locations, they would almost HAVE to re-enter North Jersey. From what I have been able to figure, there aren't that many A&P owned stores in PA and Delaware. Plus I would imagine Acme isn't interested in all PA Pathmarks anyway. So if 80 is the number, I do believe Acme will be back in North Jersey. I would see them being a very nice alternative to the mediocrity that is Stop and Shop.
DeleteWow. On one hand, it's sad to see A&P go; but on the other hand, it's amazing and quite surprising to see Acme potentially expand in such a huge way.
ReplyDeleteUpdate...Acme has officially announced on its website that is bidding to acquire 76 A&P-owned stores in CT, DE, MD, NJ, NY and PA.
ReplyDeletehttp://www.acmemarkets.com/2015/07/acme-markets-announces-bid-to-purchase-76-ap-stores/
If you look at the A&P bankruptcy website, they have a list of the stores under agreement with Acme Markets Inc. It also has the list for the A&P stores under agreement with Key Food and Stop&Shop
ReplyDeleteHere the link,
http://www.apteanotice.com/faq/