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84-628: Félix Potin is the name of a French businessman and his eponymous mass-distribution retail business, founded in the mid-nineteenth century. While the business was bought out and then collapsed in the second half of the twentieth century, the brand has been revived by a contemporary distribution network. Jean-Louis-Félix Potin was born in 1820 in Arpajon , in what is today the Île-de-France region surrounding Paris. He died in 1871. Félix Potin opened his first shop at 28 rue Coquenard in Paris in 1844, at

168-467: A lobbyist and dropped its opposition to unionizing activities of the politically powerful American Federation of Labor . George and John Hartford also took the unusual step of publishing an open letter pointing out that the legislation would increase food prices. The tide of public opinion then turned against the bill, which was defeated. In 1930, the first supermarket opened in California . On

252-416: A monopoly . A&P said their grocery-store share was only about 15%, much less than the leaders in other industries. Judge Lindley agreed with the government, fining each defendant $ 10,000. In 1949, the U.S. Court of Appeals upheld Lindley's decision; A&P decided not to appeal further. In September, the anti-trust division asked the court to order the spinoff of A&P's manufacturing operations and

336-558: A 1937 A&P study of the feasibility of opening a plant to manufacture corn flakes. The mere possibility of A&P producing corn flakes forced existing corn flake manufacturers to lower their prices by 10%. A&P's decline began in the early 1950s, when they failed to keep pace with competitors that opened larger supermarkets with more modern features demanded by customers. By the 1970s, A&P stores were outdated, and efforts to combat high operating costs resulted in poor customer service. When these efforts failed to turn A&P around,

420-549: A chain of teashops which became a staple of the High Street in the UK, and at its peak, the firm numbered around 200 cafes. The displacement of independent businesses by chains has sparked increased collaboration among independent businesses and communities to prevent chain proliferation. These efforts include community-based organizing through Independent Business Alliances (in the U.S. and Canada) and "buy local" campaigns. In

504-536: A clerk in Glens Falls, New York , he was a staffer who lacked John Hartford's strategic marketing skills. Under Burger, A&P continued to report record sales and operated with expenses of 12.6% of sales when the industry average was 15%. Burger was also president of the John A. Hartford Foundation started by sons John and George in 1929, assuring Burger's control of A&P when George died in 1957. George's trust

588-402: A clerk perhaps in the late 1850s; Hartford later was promoted to bookkeeper, then cashier, in 1866. By 1871 Hartford was in a position of authority and was responsible for expanding A&P to Chicago after its great fire . A&P's first store outside New York City was opened just days after the disaster. The firm rapidly expanded; in 1875 A&P had stores in 16 cities. In 1878, Gilman left

672-424: A defined contribution 401(k) . William Walsh, then a recently retired executive, filed a class action that was ultimately settled by increasing the value of the annuities. A&P still realized over $ 200 million and was not required to pay taxes because of tax losses carried forward from previous closing programs. The Philadelphia division also was to close, unless the unions agreed to contract concessions. When

756-493: A large training program. Weekly per-store sales increased from $ 37,000 in 1974 to over $ 70,000 in 1976, with total sales increasing from $ 6.4 billion to $ 7.2 billion despite the closures. Manufacturing was also reorganized. While initial results were promising, by 1978, A&P profits started to slide due to economic conditions caused by high inflation. With the share price down to $ 7, the John A. Hartford Foundation finally came to

840-679: A major grocery competitor. In 2003, after declaring its largest loss, A&P closed Kohl's Food Stores and A&P's remaining stores in Vermont and New Hampshire , reducing it to just over 500 stores. Also in 2003, A&P spun off the Eight O'Clock Coffee division (its last manufacturing operation) to Gryphon Investors for $ 107 million. (In 2006, Gryphon sold Eight O'Clock Coffee to Tata Global Beverages for $ 220 million). In 2005, A&P sold its 237-store Canadian division (consisting of A&P, Dominion, Ultra Food and Drug stores , as well as

924-433: A manager, and without fancy fixtures. Within two months, weekly sales increased to $ 800 and the store achieved a 30% annual return on investment. A&P quickly expanded the concept; by 1915 the chain operated 1,600 stores. A&P's tremendous growth created problems with suppliers. Cream of Wheat , the largest breakfast food manufacturer, demanded that all retailers adhere to the cereal's pricing per box. A&P purchased

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1008-515: A master at promotion; the business quickly expanded by advertising low prices. The firm was able to offer low prices by acting as both the wholesaler and retailer. Gilman also built a nationwide mail order business. By 1866, the firm was valued at more than $ 1 million (~$ 16.3 million in 2023). In 1869, the transcontinental railroad was completed; Gilman created a parallel company, the Great Atlantic & Pacific Tea Company , to promote

1092-411: A more respectable business in light of his wealth. In May 1861, Gilman turned over the tanning business to his brother Winthrop; George moved his tea business to 129 Front Street. Initially, Gilman & Company was a wholesaler. In early 1863 the firm became a retailer, Great American Tea Company . Quickly, it opened five stores, moving its office and warehouse to 51 Vesey Street . Gilman proved to be

1176-550: A news vending business in London that would become a national concern in the mid-19th century under the management of their grandson William Henry Smith . The world's oldest national retail chain, the firm took advantage of the railway boom during the Industrial Revolution by opening news-stands at railway stations beginning in 1848. The firm, now called WHSmith, had more than 1,400 locations as of 2017. In

1260-589: A plan by Booz Allen Hamilton to close 36% of its 3,468 stores. Kane agreed to resign and was replaced by Jonathan Scott, the 44-year-old president of Albertsons . Under Scott, A&P closed 1,500 stores in three years, reducing to 1,978 units. Scott hired numerous executives from outside and pushed authority down to the regional level. During his first three years, A&P built 300 supermarkets ranging from 23,000 square feet (2,100 m ) to 32,000 square feet (3,000 m ), along with its first combination grocery-drug stores with 40,000 square feet (3,700 m ) under

1344-469: A political issue in the 1912 presidential election after a 35% increase in 10 years. To counter this trend, some chains experimented with a no-frills format. After long debate, the Hartfords agreed to John's proposal of experimenting with an economy store designed to operate at a 12% gross margin. Capitalized at only $ 3,000 including its initial inventory, the prototype economy store operated with only

1428-422: A private entity in early 2012. At this time, Christian Haub left A&P, and Tengelmann wrote off its books the remaining equity. A&P briefly returned to modest profitability by cutting costs in its remaining stores, although customer spending further decreased. In 2013, again a company, A&P was put up for sale but could not find a suitable buyer. In January 2014, Sam Martin resigned. In March, Paul Hertz

1512-694: A profit of 1.3% (compared to an industry average of 1.04%) on sales of $ 11 billion. In the early 1990s, A&P started to struggle again because of the economy and new competition, especially Walmart. In 1992, A&P's sales dropped to $ 1.1 billion; it posted a loss of $ 189 million. A&P responded by strengthening its private label program and overhauling its remaining U.S. units. Most stores smaller than 40,000 square feet (4,000 m ) were expanded, closed, or replaced with units from 50,000 square feet (5,000 m ) to 80,000 square feet (7,000 m ). The new stores included pharmacies, larger bakeries, and more general merchandise. A&P continued to suffer in

1596-443: A standard business model was to receive loads of goods from a manufacturer, then label and package them in store. By contrast, Félix Potin shops sold products produced and prepackaged at the chain's own factories, then sold them at standardised, publicised prices. Potin aimed to sell large volumes at reduced profit margins. Potin was thus a pioneer of the chain-and-branch, bulk-buying model of retail, unifying distribution and sales under

1680-425: A strategy to substantially cut prices by converting A&P to a warehouse store concept that became known as W.E.O. Warehouse Economy Outlet (or Where Economy Originates). The problem was that most A&Ps were not large enough to properly implement the program; losses quickly mounted. In early 1973, the stock dropped to $ 17, and Charles Bluhdorn of Gulf+Western made a tender offer at $ 20 per share. Kane rejected

1764-506: A vast assortment of food products at much lower costs. Until 1982, A&P also was a large food manufacturer. A&P was founded in 1859 as "Gilman & Company" by George Gilman , who opened a small chain of retail tea and coffee stores in New York City , and then expanded to a national mail order business. The firm grew to 70 stores by 1878; by 1900, it operated almost 200 stores. A&P grew dramatically by introducing

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1848-519: Is the last remaining music chain store in the United States and has shrunk from over 1,000 at its height to 270 locations in 2018. In 2019, Payless ShoeSource stated that it would be closing all remaining 2,100 stores in the US. A restaurant chain is a set of related restaurants in many different locations that are either under shared corporate ownership or franchising agreements. Typically,

1932-496: The A&;P brand, dramatically increasing the product line. To make space for the new items, A&P replaced in-store premiums with Plaid Stamps, which sought to mimic S&H Green Stamps , a popular rewards program. By 1912, the corporation operated 400 stores and averaged a 22% gross margin, resulting in a 2% profit. A&P's peddlers were also operating 5,000 rural routes in distinctive red-and-black wagons. Food prices were

2016-703: The Great Depression . The Hartfords built their chain without borrowing; their low-price format resulted in even higher sales. From 1929 through 1932, A&P reported a record $ 110 million in after-tax profits with each Hartford child earning over $ 5 million yearly in dividends and equity. A&P's success caused a backlash that threatened to destroy it. Thousands of mom-and-pop grocery stores could not match A&P's prices. While small operators had little political clout, they were supplied by thousands of wholesale distributors which had considerable political influence. Anti-chain store movements gained traction in

2100-690: The Kohl's department store chain) from BATUS , enabling A&P to reenter Wisconsin and Illinois . In 1984, A&P purchased Pantry Pride 's Richmond, Virginia , division. The next year, A&P reinforced its profitable Canadian division by closing stores in Quebec , and acquiring Ontario's Dominion Stores . In the U.S., A&P started construction of larger 40,000-square-foot (4,000 m ) supermarkets known as A&P Future Stores . In 1986, A&P purchased Waldbaum's (with stores in southern New York and southern New England) and The Food Emporium ,

2184-697: The South and abandoned most of the region by pulling out of Alabama, Florida, Georgia, Kentucky, the Carolinas, Tennessee, and Virginia. Most of these stores were sold to Kroger . As a result, A&P was reduced to four regions: the Northeast, the Midwest (Michigan and Wisconsin), New Orleans, and Ontario. To reinforce the New Orleans division, A&P purchased six Schwegmann supermarkets; however, A&P

2268-651: The 1920s, but became stronger during the Depression. In 1935, Texas Congressman Wright Patman introduced legislation that would have levied a federal tax on chain stores. If adopted, this legislation likely would have ended A&P. While this legislation did not move in Congress, in 1936 Patman sponsored the Robinson–Patman Act that outlawed charging different prices to similar customers; this law passed. Patman then reintroduced his first bill. A&P retained

2352-501: The 1980s, in 2002 it operated at a record loss because of new competition, especially from Walmart. A&P closed more stores, which included the sale of its large Canadian division. A&P also spun off Eight O'Clock Coffee , the last of its manufacturing units. In 1982, Stop & Shop exited New Jersey, not returning for almost 20 years. A&P purchased most of these stores to replace obsolete ones. In 1983, A&P bought Wisconsin-based Kohl's Food Stores (which had been part of

2436-564: The A&;P Family Mart name. The first Family Mart opened in Greenville, South Carolina , as The Family Mart in 1977. The Family Mart chain consisted of mostly 40,000–55,000 square feet (3,700–5,100 m ) stores, and were among the first A&P stores to possess a combination of a full-service supermarket and pharmacy. Scott continued Kane's efforts to improve basic store operations (including cleanliness and customer service) instituting

2520-570: The Canadian Food Basics units) to Montreal-based Metro Inc. for Can$ 1.7 billion in cash plus shares of Metro. By 2009, the A&P name disappeared from these stores. In 2007, A&P closed its New Orleans division, limiting A&P's footprint to the Northeast . Also in 2007, A&P acquired Pathmark , a long-time Northeastern rival, for $ 1.4 billion (~$ 1.98 billion in 2023). With this purchase, A&P again became

2604-461: The Chicago division. Under the plan, A&P also closed its large manufacturing group except the four coffee warehouses. To finance this program, A&P planned to terminate its non-union pension plan, using its $ 200 million surplus. The plan's obligations were covered by annuities that cost only about $ 130 million because of the then high interest rates. A&P's non-union employees were covered by

Félix Potin - Misplaced Pages Continue

2688-634: The East Coast, Michael J. Cullen , a then-former A&P employee, opened his first King Kullen supermarket in Jamaica, Queens . Two years later, Big Bear opened in Elizabeth, New Jersey , and quickly equaled the sales of 100 A&Ps. In 1933, A&P's sales dropped 19%, to $ 820 million, because of the competition. After considerable debate, the Hartford brothers decided to open 100 supermarkets,

2772-469: The Hartfords and their competitors enabled the public to enjoy healthier eating at lower cost. In 1950, the average American consumed 10 percent more food than in 1930, with poorer households enjoying an especially important improvement in the quality of the food they consumed. John Kenneth Galbraith supported this contention in his 1952 book, American Capitalism , by citing A&P as an example of countervailing power . To support his thesis, he discussed

2856-492: The U.S. Supreme Court in 1931. Between then and 1933, 525 chain-store tax bills were introduced in state legislatures, and by the end of 1933 special taxes on retail chains were in force in 17 states. A chain store is characterised by the ownership or franchise relationship between the local business or outlet and a controlling business. While chains are typically "formula retail", a chain refers to ownership or franchise, whereas "formula retail" or "formula business" refers to

2940-461: The U.S. to take advantage of A&P's manufacturing plants and numerous small stores. However, the concept failed to win American customers who were attracted to other chains offering low prices on national brands. James Wood realized that another massive store-closing program was necessary to turn around A&P. In October 1981, it announced that it would downsize to under 1,000 stores and close

3024-689: The U.S., trade organizations such as the American Booksellers Association and American Specialty Toy Retailers do national promotion and advocacy. NGOs like the New Rules Project and New Economics Foundation provide research and tools for pro-independent business education and policy while the American Independent Business Alliance provides direct assistance for community-level organizing. A variety of towns and cities in

3108-480: The U.S., chain stores likely began with J. Stiner & Company, which operated several tea shops in New York City around 1860. By 1900, George Huntington Hartford had built The Great Atlantic & Pacific Tea Company , originally a tea distributor based in New York, into a grocery chain that operated almost 200 stores. Dozens of other grocery, drug, tobacco, and variety stores opened additional locations, around

3192-679: The US), or as exceeding municipal zoning authority (i.e., regulating "who owns it" rather than the characteristics of the business). Non-codified restrictions will sometimes target "chains". A municipal ordinance may seek to prohibit "formula businesses" in order to maintain the character of a community and support local businesses that serve the surrounding neighborhood. Brick-and-mortar chain stores have been in decline as retail has shifted to online shopping , leading to historically high retail vacancy rates. The hundred-year-old Radio Shack chain went from 7,400 stores in 2001 to 400 stores in 2018. FYE

3276-415: The United States whose residents wish to retain their distinctive character—such as San Francisco ; Provincetown, Massachusetts and other Cape Cod villages; Bristol, RI ; McCall, Idaho ; Port Townsend, Washington ; Ogunquit, Maine ; Windermere, Florida and Carmel-by-the-Sea, California —closely regulate, even exclude, chain stores. They don't exclude the chain itself, only the standardized formula

3360-665: The Villette factory and opened a boutique on the Boulevard Malesherbes . In 1870 he started a home-delivery service. The business continued to grow after its founder's death, with a second factory in 1880 and a second large shop on Rue de Rennes in 1904. Félix Potin factories employed 1,800 workers in 1906, growing to 8,000 by 1927. By 1923, the Félix Potin name counted 70 branches, 10 factories, 5 wine stores and 650 horses. The business survived in more or less

3444-615: The active management of the firm to Hartford. By then, the firm operated 70 lavishly-equipped stores and a mail order business with combined annual sales of $ 1 million. To raise revenue, Congress raised tariffs on tea and coffee. Profits on these products declined; around 1880 A&P started to sell sugar in its stores. The company continued aggressive growth and by 1884 operated stores as far west as Kansas City and as far south as Atlanta . The company also operated wagon routes to serve rural customers. About this time, two of Hartford's sons, George (1864–1957) and John (1872–1951), joined

Félix Potin - Misplaced Pages Continue

3528-560: The age of just 24. This was followed by numerous other branches operating under the same name. In 1860, he opened the first two-level, large-area retailer on the Boulevard de Sébastopol in Paris. The following year he constructed a Félix Potin factory in La Villette , in the northern outskirts of Paris. The Félix Potin network experienced remarkable success during the late Second Empire and early Third Republic . In 1864 he expanded

3612-511: The attention of President Franklin D. Roosevelt 's anti-trust chief, Thurman Arnold , who was urged by Representative Wright Patman to investigate A&P. In 1942, A&P and their senior executives—including the Hartford brothers—were criminally charged for restraint of trade in Dallas federal court . In 1944, prosecutors withdrew the complaint on grounds that the Dallas federal judge thought

3696-686: The breakup of A&P's retail operations into seven independent companies. Thousands of letters poured into the Justice Department supporting A&P; the Hartford brothers gave extensive interviews with Time magazine and appeared on the November 13, 1950, cover. Time wrote that, next to General Motors , A&P sold more goods than any other retailer in the world. John was quoted as saying, "I don't know any grocer who wants to stay small ... I don't see how any businessman can limit his growth and stay healthy." The case dragged on into

3780-445: The business-friendly Eisenhower administration . In late 1953, the government agreed to drop its demands to break up A&P if they shut down their produce brokerage that also supplied competitors. In fighting the anti-trust suits, A&P also emphasized the considerable impact of their activities on the public welfare, which had been recognized as the legacy of George Hartford Sr. and his sons. The concepts pioneered and perfected by

3864-663: The case was weak. The same day the Dallas case was withdrawn, charges were filed in Danville, Illinois against the same defendants, and were assigned to Federal Judge Walter Lindley . The prosecution complained that A&P had an unfair competitive advantage because their vertical integration including manufacturing; warehousing, and retailing allowed them to charge lower prices. Prosecutors also complained that A&P refused to buy from food retailers who sold only through brokers or refused to give A&P advertising allowances. The judges contended that if unchecked, A&P would become

3948-603: The chain uses, described as " formula businesses ". For example, there could often be a restaurant owned by McDonald's that sells hamburgers, but not the formula franchise operation with the golden arches and standardized menu, uniforms, and procedures. The reason these towns regulate chain stores is aesthetics and tourism. Proponents of formula restaurants and formula retail allege the restrictions are used to protect independent businesses from competition. The Great Atlantic %26 Pacific Tea Company The Great Atlantic & Pacific Tea Company , better known as A&P ,

4032-497: The chain veered from its low-cost discipline. In early 1926, the brothers discussed the situation with division management and launched a program to lower prices and improve cost controls. That year, sales increased 32%; A&P moved its headquarters to the new Graybar Building adjacent to Grand Central Terminal . In 1927, A&P established a Canadian division ; by 1929 it operated 200 stores in Ontario and Quebec . In 1930,

4116-466: The characteristics of the business. There is considerable overlap because key characteristic of a formula retail business is that it is controlled as a part of a business relationship, and is generally part of a chain. Nevertheless, most codified municipal regulation relies on definitions of formula retail (e.g., formula restaurants ), in part because a restriction directed to "chains" may be deemed an impermissible restriction on interstate commerce (in

4200-469: The company passed into a trust with his sons George, Edward, and John as trustees in complete control. After World War I , A&P rapidly expanded; in 1925 it operated 13,961 stores. The newer combination stores included space for meats, produce, and dairy, as well as traditional grocery items. Sales reached $ 400 million and profit was $ 10 million. However, the Hartford brothers were concerned that gross margins had reached 22% to cover higher costs and that

4284-475: The company's leases were in his name. The heirs realized that without Hartford, the firm would quickly become unprofitable. Therefore, in 1902 they agreed to a settlement where A&P was to be incorporated, with $ 2.1 million (~$ 59.9 million in 2023) in assets. Under this agreement, the Gilman heirs received $ 1.25 million in preferred shares at 6% interest, while Hartford received $ 700,000 in common stock and

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4368-475: The company, while his brothers split the remaining 49%. Under Isidore's (and later his son Louis') leadership, Maisons Dewachter would become one of the most recognized names in Belgium and France with stores in 20 cities and towns. Some cities had multiple stores, such as Bordeaux, France . Louis Dewachter also became an internationally known landscape artist, painting under the pseudonym Louis Dewis . By

4452-849: The conclusion that it could no longer wait for a turnaround. Erivan Haub , owner of the German Tengelmann Group , expressed interest. Born in 1930, Haub studied retailing in the U.S. after World War II and built his family's grocery business into a 2,000-store chain with annual sales of the equivalent of $ 2 billion. Although still having a home in Germany, his children were born in the United States. Haub agreed to pay $ 7.375 per share for 42% of A&P's stock. Haub also quietly bought other shares until he owned 50.3% in February 1981. Scott did not renew his five-year contract; Haub hired James Wood to become chairman. Wood, an Englishman who

4536-416: The corporation's 16,000 stores reached $ 2.9 billion (~$ 42.1 billion in 2023) in sales, resulting in a 25% grocery-store share in its operating areas, and about 10% nationwide. No retail company had ever achieved these results. A&P was twice as large as the next largest retailer, Sears , and four times that of grocer Kroger . Unlike most of its competitors, A&P was in excellent position to weather

4620-487: The early 1920s, chain retailing was well established in the United States, with A&P, Woolworth's , American Stores, and United Cigar Stores being the largest. By the 1930s, chain stores had come of age, and stopped increasing their total market share. Court decisions against the chains' price-cutting appeared as early as 1906, and laws against chain stores began in the 1920s, along with legal countermeasures by chain-store groups. State taxes on chain stores were upheld by

4704-485: The economy store concept in 1912, growing to 1,600 stores by 1915. After World War I , it added stores that offered meat and produce, while expanding manufacturing. In 1930, A&P, by then the world's largest retailer, reached $ 2.9 billion in sales ($ 52.9 billion today) with 15,000 stores. In 1936, it adopted the self-serve supermarket concept and opened 4,000 larger stores (while phasing out many of its smaller units) by 1950. After two bankruptcies, A&P finally closed

4788-494: The filing, A&P remained in operation (with its stock symbol changed to GAPTQ ) while it developed a reorganization plan. In November 2011, the corporation announced that it had entered into an agreement to receive $ 490 million (~$ 655 million in 2023) of debt and equity financing from Yucaipa, Mount Kellett Capital Management, and investment funds managed by Goldman Sachs Asset Management. The agreement enabled A&P to complete its restructuring and emerge from Chapter 11 as

4872-588: The firm. A&P lore holds that George convinced his father to expand the product line to include A&P-branded baking powder . Over the next decade, the company added other A&P-branded products, such as condensed milk , spices, and butter. As it expanded its offerings, the tea company was gradually creating the first grocery chain. By 1900, the firm had sales of $ 5 million (~$ 151 million in 2023) from 198 stores as well as its mail order and wagon route operations. However, other grocery chains were expanding more rapidly and blanketing their respective areas while

4956-668: The first fish and chips restaurant (as opposed to a take-away) in London, and its instant popularity led to a chain comprising 22 restaurants with locations around London and seaside resorts in southern England including Brighton , Ramsgate and Margate . In 1864, the Aerated Bread Company (ABC) began operating a chain of teashops in Britain. ABC would be overtaken as the leader in the field by Lyons , co-founded by Joseph Lyons in 1884. From 1909 Lyons began operating

5040-476: The first of which was in Braddock, Pennsylvania . The new stores proved to be very successful; in 1938, the company operated 1,100 supermarkets. The chain continued to build supermarkets and slowly phase out smaller stores except in dense urban areas; in 1950, A&P operated 4,000 supermarkets and 500 smaller stores. Sales reached $ 3.2 billion with an after-tax profit of $ 32 million. A&P's success attracted

5124-656: The heirs of the Hartford family and the Hartford Foundation, which owned a majority of the stock, sold to the Tengelmann Group of Germany. In 1951, John Hartford died in the Chrysler Building after returning from a meeting of the automaker's board of directors. George remained as A&P's chairman and treasurer, appointing the corporation's longtime secretary Ralph Burger as its new president. While Burger started with A&P in 1910 as

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5208-651: The initial sales gains evaporated and the six outside directors threatened to resign unless Burger retired. When Burger left in May 1963, the stock was trading in the $ 30s (~$ 299.00 in 2023). Burger was replaced with a succession of presidents who were unable to stem the downward spiral. In 1971, the board turned to William J. Kane, who joined A&P in 1934 as a full-time store clerk. Kane believed that A&P could be turned around by focusing on basic store operations, including cleanliness, product availability, customer service, and courtesy. When his program stalled, Kane implemented

5292-684: The largest grocery retailer in the New York City area, and the second-largest in the Philadelphia area. However, the Federal Trade Commission declared that as a result of the acquisition, A&P would be a monopoly in parts of Long Island and Staten Island . As part of its settlement with the FTC, the corporation was forced to divest of some Waldbaum's and Pathmarks. When A&P marked its 150th anniversary in 2009, it

5376-449: The largest supermarket operator in the New York City area. At the same time, Tengelmann reduced its shares to 38.5%, while the private equity firm Yucaipa , as major shareholder of Pathmark, acquired 27.5% of A&P's shares. In 2012, A&P emerged from bankruptcy by becoming a private company, as Tengelmann ended its holding, and briefly returned to modest profitability in 2013 and 2014. This allowed A&P to regain its position as

5460-507: The last of its doors in 2015. The forerunner of A&P was founded in the 1850s as Gilman & Company by George Gilman (1826–1901) to continue his father's leather tanning business; in 1858 the firm's address was 98 Gold Street in Manhattan . Gilman's father died in 1859, leaving the son wealthy. That year, Gilman & Company entered the tea and coffee business from that storefront. One source speculates that Gilman decided to enter

5544-595: The latter an upscale New York City-based chain. In 1989, A&P acquired Michigan-based Farmer Jack ; also, A&P attempted to expand into Europe by bidding unsuccessfully for the Gateway Corporation (then the United Kingdom's third-largest grocery chain), although they did open stores in the Netherlands, which they operated until the early 2000s. At the end of the decade, A&P reported

5628-476: The offer, although some stockholders thought that the offer was attractive considering A&P's continuing difficulties. A&P exited California and Washington state in 1971 and 1974, respectively, making Missouri its westernmost reach. In 1974, the corporation also left its long-time headquarters in the Graybar Building, moving to Montvale, New Jersey . In February 1975, A&P considered

5712-435: The product at wholesale, 11 cents per box (3 cents less), and decided that a 1-cent markup was appropriate for its economy store format. Cream of Wheat cut off supplies and A&P sued. U.S. District Court Judge Charles Hough ruled against A&P, saying that a manufacturer can establish retail prices. As a result, A&P and other large chains expanded manufacturing of private brands. Hartford Sr. died in 1917; control of

5796-685: The remainder of the preferred shares. This gave Hartford control of the voting stock. Over several years, Hartford was able to repurchase the preferred shares from the Gilman heirs. A&P opened an average of one store every three weeks. A nine-story headquarters and warehouse was built in Jersey City ; it later expanded to include a manufacturing plant and bakery. By 1908, George Hartford Sr. divided management responsibilities among his sons, with George Jr. controlling finance with John directing sales and operations. The sons ran A&P for over 40 years. The younger Hartford moved aggressively to promote

5880-430: The restaurants within a chain are built to a standard format through architectural prototype development and offer a standard menu and/or services. Fast food restaurants are the most common, but sit-down restaurant chains also exist. Restaurant chains locations are often found near highways , shopping malls and densely populated urban or tourist areas . In 1896, Samuel Isaacs from Whitechapel , east London opened

5964-548: The same brand. Frank Winfield Woolworth 's eponymous five-and-dime chain in the US was, to some extent, a revival and development of Potin's model. The architect Paul Auscher (1866–1932) designed several buildings for Félix Potin. The distinctive turrets bearing Félix Potin's name can still be seen on the Boulevard de Sébastopol (now a Monoprix ) and Rue de Rennes (now a Zara ). Chain store In 1792, Henry Walton Smith and his wife Anna established W.H. Smith as

6048-677: The same form until 1956, when the 1,200 shops became minimarkets , which were bought out by Greek-French entrepreneur André Mentzelopoulos in 1958. After a period of poor management, this business collapsed and was liquidated in 1996, with the Promodès chain buying a few of the points of sale. In 2003, the Société Philippe Potin acquired the right to use the Félix Potin name for its distribution network in South-East France . When Félix Potin founded his business,

6132-990: The same time, so that retail chains were common in the United States by 1910. Several state legislatures considered measures to restrict the growth of chains, and in 1914 concern about chain stores contributed to passage of the Federal Trade Commission Act and the Clayton Antitrust Act. Isidore, Benjamin and Modeste Dewachter originated the idea of the chain department store in Belgium in 1868, ten years before A&P began offering more than coffee and tea. They started with four locations for Maisons Dewachter (Houses of Dewachter): La Louvière , Mons , Namur and Leuze . They later incorporated as Dewachter frères (Dewachter Brothers) on January 1, 1875. The brothers offered ready-to-wear clothing for men and children and specialty clothing such as riding apparel and beachwear. Isidore owned 51% of

6216-473: The tea company's stores were spread over a much larger area. A&P quickly found itself at a disadvantage. In 1901, George Gilman died without a will , starting a legal battle among his numerous heirs. The senior Hartford stepped into the battle by asserting that, in 1878, Gilman gave him half of the company in an unwritten partnership agreement. Evidence provided to the court established that Hartford received half of A&P's profits starting in 1878 and that

6300-596: The then-new concept of prepackaged tea under the Thea-Nector name. The tea company, which some sources say was co-founded by George Huntington Hartford , continued to use the Great American name for mail-order purposes. In 1871, A&P introduced another concept when it offered premiums , such as lithographs, china, and glassware with the purchase of coffee and/or tea at its stores. These premiums are now collectibles. Hartford joined Gilman & Company as

6384-660: The unions refused, A&P started implementing the plan. The unions offered to purchase the stores, but realized that they did not have the capital required. As an alternative, the unions agreed to a profit-sharing arrangement if A&P formed a new subsidiary , and operated under a different name. The new banner, " Super Fresh ", proved profitable. A&P realized that its name was not the asset it had been. A&P started to acquire stores from other chains. Starting in 1982, A&P acquired several chains that continued to be operated under their own names, rather than being converted to A&P . While A&P regained profitability in

6468-603: Was an American chain of grocery stores that operated from 1859 to 2015. From 1915 through 1975, A&P was the largest grocery retailer in the United States (and, until 1965, the largest U.S. retailer of any kind). A&P was considered an American icon that, according to The Wall Street Journal , "was as well known as McDonald's or Google is today". At its peak in the 1940s, A&P captured 10% of total US grocery spending. Known for innovation, A&P improved consumers' nutritional habits by making available

6552-615: Was dissolved; the stock began selling on the New York Stock Exchange (under the symbol GAP ) at $ 59 per share. For the first time, A&P elected six outside directors onto its board. In late 1961, A&P stock peaked at $ 70 (~$ 547.00 in 2023). The seeds for A&P's 35-year fall from the country's largest grocery to bankruptcy (and later liquidation) were planted in the 1950s: Ralph Burger attempted to reverse downward tonnage figures by reintroducing trading stamps, creating A&P's Plaid Stamps. However, by late 1962,

6636-565: Was especially hard hit because of its increased debt load to complete the Pathmark purchase. In June 2010, A&P stopped paying $ 150 million (~$ 205 million in 2023) in rent on the closed Farmer Jack stores. In August, A&P announced that it would close another 25 stores in Connecticut, Maryland, New Jersey, New York, and Pennsylvania: 13 Pathmarks, 6 A&Ps, 2 Waldbaum's, and 4 Super Fresh stores. In September, A&P announced it

6720-476: Was named CEO and President as the company broke even. On January 15, 2015, the trade publication Supermarket News reported that A&P was still for sale. There were rumors of several parties being interested, including Cerberus , still owning Albertsons assets. However, no suitable offers were received. In May, rumors emerged that A&P was in more financial trouble as it declared a huge loss (in April) for

6804-427: Was now reduced to 600 stores. Christian W.E. Haub , the youngest son of Erivan, became co-CEO in 1994 and CEO in 1997 when Wood retired from that post. In 2001, Wood also retired as chairman, with Haub assuming that title as well. Nationwide, Walmart gained a dominant position in the grocery industry, forcing much of the competition to downsize, though in A&P's core Northeast region, Walmart still had not become

6888-598: Was ranked only No. 21 by Supermarket News of the top 75 North American grocery retailers based on 2008 fiscal year estimated sales of US$ 9.6 billion (~$ 13.3 billion in 2023). Tengelmann held approximately 38.5 percent of A&P, with Yucaipa holding a 27.5 percent share; the rest was held by individual shareholders and investor groups. Christian Haub was chairman. Eric Claus, then president and CEO, left A&P, with Sam Martin assuming these responsibilities. The 2008 recession hit many supermarkets as customers migrated to discount markets in even greater numbers. A&P

6972-489: Was selling seven Connecticut stores to Big Y . On December 10, 2010, bankruptcy rumors surfaced; A&P stock tumbled from over $ 3 per share to below $ 1 before trading was halted. Two days later, A&P announced it was filing for Chapter 11 bankruptcy. According to documents submitted to U.S. Bankruptcy Court in White Plains, New York , A&P listed over $ 2.5 billion in assets, and $ 3.2 billion in debt. After

7056-508: Was the same age as Haub, previously ran the American Grand Union supermarket chain. Many executives recruited by Scott left A&P; they were replaced by Wood's associates from Grand Union. In Germany, Tengelmann had considerable success with Plus stores ; they were smaller units featuring low price private-label products along with a limited assortment of meats and produce. A&P opened several divisions of Plus stores in

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