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The Great Atlantic & Pacific Tea Co. (A&P) announced yesterday that it will sell seven of its Connecticut stores to Big Y, which it says is part of its broader “comprehensive turnaround strategy.

“We continue to evaluate our operating footprint and its alignment with our turnaround strategy. These seven stores were clearly outside of our core markets and their sale was necessary,” stated Sam Martin, President & CEO, A&P.

The move comes less than a month after A&P announced that it was closing 25 unproductive stores in an effort to reduce its losses, which have been mounting a series of successive quarters. The company also has had three CEOs in less than a year, firing the last one after just eight months on the job. Since being hired, Martin, the former Whole Foods COO, has been overhauling much of the company’s executive suite. And, there has been rampant speculation that A&P could sell all of its Food Emporium stores in order to improve its balance sheet.

“The company faces many difficult decisions over the next several months which are required to strengthen our foundation and improve our performance going forward,” says Martin.
KC's View:
Death by a thousand cuts.