Friday, April 30, 2010

The Great Atlantic & Pacific Tea Co. The A&P Food Store / Supermarket‏

History/Timeline

The Great Atlantic & Pacific Tea Company
Milestones by Decades

1859

� The Great American Tea Company is founded as a mail order business by tea and spice merchants George Huntington Hartford and George Gilman.

� The first store-warehouse operation opened in New York City at 31 Vesey Street.

1860s

� The Company expands, opening 10 more stores along the Eastern Seaboard.

� Mail order business grows, with deliveries made using horse-drawn wagons.

� The Great American Tea Company becomes one of the country's leading advertisers, placing ads in the most widely read publications of the times - religious weeklies- with a readership composed primarily of tea drinkers.

� In 1869, the Company is renamed The Great Atlantic & Pacific Tea Company in honor of the completion of the coast-to-coast, transcontinental railroad.

1870s

� A&P shipped large food donations and sent a small staff to Chicago to help residents after the "great fire" of 1871. As many as 250 people perished in the fire and nearly 17,000 buildings were destroyed.

� After the fire, A&P built stores in the city and established itself in America's heartland.

� With 75 stores in operation, George Gilman retires in 1878.

1880s

� A&P employs peddlers who drive horse-drawn wagons covering 5,000 delivery routes throughout Company territories.

� In 1881, A&P becomes the first grocery chain to operate 100 stores.

� In 1880, George Hartford's son, George L. Hartford, enters the business as chief casher at age 15.

� With the public's taste for coffee growing rapidly, A&P establishes its own brand, packaged in a red bag. George Huntington Hartford names the product Eight O'Clock Breakfast Coffee - the time of the day that he believed the most coffee was consumed.

� A&P reaches $1 million in sales in 1887. At the suggestion of 22 year-old George L. Hartford, the Company begins marketing its own brand of baking powder. This becomes the first private label item manufactured by the Company. A&P also pioneers the use of refrigerated railroad cars to transport fruit, and becomes the first to bring fresh seafood to the Midwest.

� In 1888, George Hartford's younger son, John A. Hartford, joins the Company at age 16.

1890s

� A&P introduces premium "checks" to be redeemed for cups, saucers and other goods.

1900s

� A&P is incorporated in New Jersey in 1900, entering the new millennium with nearly 200 stores doing $6 million in sales.

� Canning operations for A&P brand tomatoes and pears are established.

� In 1907, A&P moves its corporate headquarters from lower Manhattan to Jersey City, N.J., the site of the Eight O'Clock roasting plant, where the Company remained for 20 years.

1910s

� In 1912, John Hartford convinces his father and brother to launch the economy store - a limited assortment, cash and carry, no frills format. The concept flourished, beginning an extraordinary period of development in which A&P grew from about 350 stores in 1910 to 4,638 in 1920.

� George Huntington Hartford dies in 1917.

� Meat markets are added to the A&P stores in 1919 and the American Coffee Corporation is organized.

1920s

� A&P grows from 4,638 stores doing $235 million in sales in 1920, to 15,418 stores doing $1 billion in 1929.

� A product testing laboratory for quality control is introduced in the early 1920s.

� In 1925, the Company reorganized into five separate divisions; a sixth is added the following year.

� The A&P Premium Catalog boasted over 60 pages of items that could be obtained with savings coupon "checks". For example, if you purchased a 50-cent can of baking powder, you received 10 checks.

� In 1924, The A&P Radio Hour becomes America's first national radio program.

� A&P moved it's headquarters to the Graybar building in 1927.

� George L. Hartford's conservative financial policies preserve A&P's stability after the 1929 stock market crash. Single-year lease commitments, minimal real estate ownership, dispersal of funds among many banks and portable store equipment configurations minimize the Depression's impact on the Company. Thus A&P maintains low price structure, and grows sales in 1930 to $1.07 billion, despite nationwide drop in per capita food spending.

1930s

� A&P grows to 15,737 stores and sales of more than $1 billion, and expands into California, Washington and Canada.

� The Company continues to expand its private label business, with its Quaker Maid factories producing canned goods and other pantry items; its Nakat Packing Corporation harvesting and canning salmon, and its Jane Parker Bakeries producing baked goods.

� In 1933, A&P participates in the World's Fair in Chicago. Housed in a 2,000 seat amphitheater, the A&P Carnival draws thousands of visitors with the A&P Marionette Revue, Harry Horlick and the A&P Gypsies and other entertainment. Other A&P attractions included a canopied boardwalk where tea dances were held, and free tea and coffee samples were distributed.

� 1936 marks the opening of A&P's first "supermarket," a 28,125- square-foot store in Braddock, Pa.

� In 1937, A&P introduces Woman's Day magazine through a wholly- owned subsidiary, The Stores Publishing Company. The magazine features articles on food preparation, home decoration, needlework and childcare, selling for 2 cents a copy.

� The A&P Radio Hour gains popularity in the 1930s. Featured artists included Harry Horlick and the A&P Gypsies and Kate Smith.

� Eight O'Clock coffee becomes the best-selling brand of coffee in the world. From 1939 through 1941, coffee achieved profits greater than all it's A&P retail stores combined.

1940s

� A&P consolidates its business from smaller Economy Stores to larger supermarkets, reducing the store count from 7,250 in 1940 to 4,682 in 1949, while nearly tripling sales from 1.1 billion in 1940 to 2.9 billion in 1949.

� Sold exclusively in A&P stores, Woman's Day magazine's circulation reaches 3 million in 1944.

� A&P expands its merchandising by introducing self-service meat and frozen food departments, and promotes bakeries as "stores within the store."

� Management establishes regional training centers to sharpen new employees' skills in merchandising, product handling and operations.

1950s

� Upon John A. Hartford's death in 1951, Ralph Burger is appointed President, a role he would hold until 1962. He added the title of Chairman in 1958.

� George L. Hartford, the last active management member of the founding family, dies in 1957. A&P becomes a publicly traded Company, although the Hartford Family Foundation maintains the majority investment.

� With a circulation of 4 million, A&P sells Woman's Day to an independent publisher.

� In 1958, sales grow to $5 billion in 4,252 stores. A&P tops the industry, with volume exceeding that of its closest competitor by more than $1 billion.

� A&P celebrates its 100th anniversary in 1959.

1960s

� In 1960, A&P operates 4,351 stores in 37 states, the District of Columbia and Canada. But sales and profitability begin to decline, as competitors follow consumers to growing suburban markets with large, new stores.

� With its new Plaid Stamps redemption program in 1963, A&P brings back the premium concept originally introduced in the early 1900s. Shoppers receive plaid-colored stamps with every purchase, which are later redeemed for popular household items.

� A&P's continuing emphasis on private label marketing loses consumer support, as the growth of national television advertising drives increasing customer demand for national brand products.

� Despite that trend, in 1965 A&P completes construction of a 1,500,000 square-foot private label manufacturing plant in Horseheads, N.Y., at a cost of over $25 million. It is (at the time) the largest food manufacturing and processing facility in the world.

� Due to poor sales and strong independent competition, A&P withdraws from California in the late 1960s.

1970s

� A&P opens a warehouse store, in May 1971, and calls it WEO (Warehouse Economy Outlet). This low-price warehouse concept was rolled out to 1500 stores featuring displays of fast-selling grocery items in the original cases.

� In 1974, A&P relocates headquarters from Manhattan's Graybar Building to suburban Montvale, N.J.

� Ongoing losses prompt management changes, which along with a restructuring program in the mid through late 1970s, result in a contraction of the chain from 4,427 to 1,542 stores. Profitability is restored temporarily, but declines again due to low sales growth, high costs and aggressive competition in key markets.

� After more than a decade of decline, in 1979 the Hartford Foundation and family members sell majority of A&P shares to The Tengelmann Group of West Germany.

1980s

� In 1980, the new board of directors elects James Wood, former Chief Executive of The Grand Union Company, as Chairman, President & Chief Executive Officer of A&P.

� From 1980 through 1982, management shutters operations in several markets, closing hundreds of older stores and the majority of manufacturing operations, including the Horseheads, N.Y. facility.

� Beginning a new growth via acquisition strategy in 1981, the Company purchases 17 Stop & Shop supermarkets in New Jersey, the first time A&P had ever acquired stores from competition.

� In 1982, the smaller and reorganized A&P, now with fewer than 1,000 stores, returns to profitability.

� In 1982, the Company also launches the Super Fresh banner in its Philadelphia division. Emphasizing product freshness and strong customer service, the banner expands outward from Philadelphia.

Super Fresh

� In its first major acquisition, A&P purchases Wisconsin-based Kohl's Food Stores in 1983.

� In 1985, A&P Canada acquires 92 Dominion stores, including two warehouses and an office complex.

� "We Built a Proud New Feeling" becomes the Company's slogan throughout the 1980s. An electronic advertisement, prominently positioned high above New York City's Times Square, heralds the message below a giant A&P logo.

� In 1986, A&P acquires the Bronx, N.Y.-based Shopwell Inc., which includes 26 upscale stores named The Food Emporium.

� The Company further expands in New York with the acquisition of Waldbaum's, Inc. in the fall of 1986.

� In 1987, A&P creates an upscale store-brand program under the Master Choice name.

� In 1989, A&P acquires the Detroit, Mich.-based Farmer Jack chain from Borman's Inc.

1990s

� Christian Haub joins A&P in 1991 as Vice President, Development & Strategic Planning and a member of the Board of Directors. In December 1992, he is elected President & Chief Operating Officer, and becomes Co-Chief Executive Officer in April 1997. In May of 1998, Mr. Haub succeeds James Wood as President & Chief Executive Officer.

� In 1994, A&P in the U.S. launches a new private label marketing program, replacing the banner-specific labels previously sold through A&P and each of its subsidiaries. The new program introduces four new corporate brands: America's Choice, Master Choice, Health Pride and Savings Plus.

� A&P Canada opens the first Food Basics, a no frills store offering every day low prices, in 1995.

� In 1998, A&P launches Project Great Renewal, a comprehensive revitalization program to restore profitability and build the foundation for future growth.

2000

� In 2000, The Food Emporium opens its unique Bridgemarket store, located at 59th Street and First Avenue beneath New York City's landmark Queensborough Bridge. The site had previously been the scene of one of New York's historic open-air markets. The Food Emporium

� Christian Haub is elected Chairman of the Board in April 2001, and assumes that office on May 1, 2001.

� In November 2001, A&P opens the first Food Basics Store in the U.S. in Passaic, NJ.

� In October 2002, A&P management restructures the Company, establishing A&P U.S. and A&P Canada business units. Brian Piwek is named President & Chief Executive Officer of A&P U.S. and Eric Claus joins the Company as President and Chief Executive Officer of A&P Canada.

� In 2003, in a program to reduce debt and lower operating costs, A&P exits Northern New England, sells Kohl's stores in Wisconsin, closes all remaining Kohl's operations, and sells the Eight O'Clock Coffee division.

� In August 2005, The Great Atlantic & Pacific Tea Company, Inc. sold A&P Canada to METRO INC., a supermarket and pharmaceutical operator in the Provinces of Quebec and Ontario Canada.

� Eric Claus was named President and Chief Executive Office of A&P and Christian Haub became Executive Chairman responsible for the Company's long-range strategic direction as well all public aspects of A&P.

� In 2009 The Great Atlantic & Pacific Tea Company celebrates its 150th Anniversary as the oldest grocery retailer in the United States

� Andreas Guldin is promoted to the position of Vice Chairman and Chief Strategy Officer

� February 2010, Ron Marshall is named the President & CEO

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