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The Great Atlantic & Pacific Tea Co. is replacing three of its traditional A&P units in northern New Jersey with no-frills Food Basics stores, according to a report in the Bergen Record.

An A&P spokesman told the paper that while the stores were “undersized” by 2002 standards, converting them to a format that has an edited grocery selection plus little in the way of perishables and service was an effective use of the space.

The Food Basics banner has been very successful for A&P in Canada, and tests of the format sop far in the New York metropolitan area have had positive results so far.
KC's View:
Not only does a Food Basics store allow A&P to use its space more effectively, but it also is cheaper to run – which is a good thing at a time when the chain is struggling because of competitive pressures and heightened regional economic woes.