Targeted formats have been and will continue to be key to the success of the Great Atlantic & Pacific Co.'s (A&P) in the New York metro market, the company's executive chairman Christian Haub told attendees at Lehman Brothers' 11th Annual Retail and Restaurant Conference.
According to a report on the Progressive Grocer website, Mr. Haub said A&P has transformed itself from a "geographic banner" to a "format-driven" operation. A&P counts three primary formats (Discount, Fresh and Gourmet) as helping it achieve its number one share of market in New York and its surrounding suburbs.
With the acquisition of Pathmark, A&P is also looking to launch a center-store price impact format under that chain's banner.
Mr. Haub is also looking to expand A&P's Food Basics banner, which he said has fared well in Canada. A&P currently operates 11 of the Food Basics stores in New York, New Jersey and Pennsylvania and A&P's executive chairman sees an opportunity to grow the count to "100 stores or more" within its existing trade area.
Discussion Questions: What do you think of A&P's "format-driven" strategy? Has it been as successful as Christian Haub suggested at the Lehman Brothers' conference or are there other factors at work in the New York metro market to explain A&P's upbeat self-assessment? Which of the formats do you see as having the greatest potential for the company?