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Quite ironic if Kroger does end up buying A&P as well, considering we all hope they would move into the area, but with the announced closings A&P are effectively pulling out of the South Jersey area.
It depends if Kroger wants to service the Philly region. I assume so, since if it purchased A&P, it'd gain more than a dozen of operating stores in SE PA and DE.
Pathmark still has stores in PA and DE, including Boothwyn which is right over the Commodore Barry Bridge and one by the Wilmington airport which is right at the terminus of the NJ Turnpike.
Assuming it wants to service Philly, it'd buy airtime on the local Philly TV stations and it'd essentially wouldn't cost more to advertise or operate in So. NJ, with exception of printed fliers. Getting into Burlington-Camden-Gloucester area wouldn't be a major hurdle but there might be challenges in site selections. Anyways, most of the closed/closing Pathmark/Superfresh stores in So. NJ, with the exception of Westmont, were somewhat rundown.
Pathmark will sell or close the southern division , they will keep Ny and north Nj, the real estate in New York is in prime location , same with north jersey , Philly pathmark is old, they cannot compete with Shoprite. With that being said, shoprite will continue to dominate the Philly and southern n.j areas, Kroger just bought harry teeters 2.9 billion dollars, do they ( Kroger) really want to dump another billion for ,Pathmark stores, it will take them another 2 billion to upgrade stores that have not updated in years, the down fall with pathmark was they never changed with the times, all they can hope for now is a smaller investor to come in and buy the Philly stores, it is still a hard buy, Shoprite has a supermarket on every couple of miles from pathmark , there are to many Acmes, walmart, wegmans , the market is over run, target, rite aid , everyone sells food, the reason why wegman is a hit is because they offer food prepared by chefs, cheese from all over the world, resturants, wines , shoprite offers lower prices well stocked stores, great produce, and customer service (even baggers), and walmart will match prices will competing stores, The old pathmark really don't have much to offer, A&P destroy that, and it reputation .
Location: The place where the road & the sky collide
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Originally Posted by Noelle Paige
Pathmark will sell or close the southern division , they will keep Ny and north Nj, the real estate in New York is in prime location , same with north jersey , Philly pathmark is old, they cannot compete with Shoprite. With that being said, shoprite will continue to dominate the Philly and southern n.j areas, Kroger just bought harry teeters 2.9 billion dollars, do they ( Kroger) really want to dump another billion for ,Pathmark stores, it will take them another 2 billion to upgrade stores that have not updated in years, the down fall with pathmark was they never changed with the times, all they can hope for now is a smaller investor to come in and buy the Philly stores, it is still a hard buy, Shoprite has a supermarket on every couple of miles from pathmark , there are to many Acmes, walmart, wegmans , the market is over run, target, rite aid , everyone sells food, the reason why wegman is a hit is because they offer food prepared by chefs, cheese from all over the world, resturants, wines , shoprite offers lower prices well stocked stores, great produce, and customer service (even baggers), and walmart will match prices will competing stores, The old pathmark really don't have much to offer, A&P destroy that, and it reputation .
Do you not understand that A&P owns Pathmark? They are part of the A&P sale. The Church Road Pathmark was updated before A&P got their claws into the chain.
Yes I understand a&p owns pathmark, they also own super fresh , and others, do you understand they are under different banners, what a&p will do is to sell off each banner . A&p will take any offer,they will sell bit by bit, and if they can find a big sucker to buy the company as a whole so be it.
Location: The place where the road & the sky collide
23,813 posts, read 34,657,307 times
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Quote:
Originally Posted by Noelle Paige
Yes I understand a&p owns pathmark, they also own super fresh , and others, do you understand they are under different banners, what a&p will do is to sell off each banner . A&p will take any offer,they will sell bit by bit, and if they can find a big sucker to buy the company as a whole so be it.
A&P will go with whatever gets them the most money. They are not in a position to call the shots. The vultures are circling. They have 1/2 of the vultures who were speculated &/or known to be after Harris Teeter.
If Kroger gets A&P they will have stores from NYC to Charleston. Kroger is the elephant in the room. If they get A&P they will fill in the Delaware Valley. If not, they can still move in from the northern-most Harris Teeters.
Yes I understand a&p owns pathmark, they also own super fresh , and others, do you understand they are under different banners, what a&p will do is to sell off each banner . A&p will take any offer,they will sell bit by bit, and if they can find a big sucker to buy the company as a whole so be it.
Although an asset sale is very much possible, it seems their preferred option is to put the whole company up for sale. According to a supermarket industry consultant, "the market is at the beginning of a very ramped up mergers and acquisitions time", so it is not out of the question for someone to come in and scoop up the whole company. The WSJ mentions that a sale could "value the company at $1 billion or more". To put things into perspective, Kroger just recently announced a deal to buy Harris Teeter for $2.44 billion. And quoting the same supermarket industry consultant from earlier, "Money is cheap, and for supermarket chains looking for growth, mergers and acquisitions are the usual route."
Additionally Yucaipa Cos., which is the main shareholder of A&P, supposedly wants out fast. So again it appears their ultimate goal is to sell everything, including the "prime" northern division you mentioned.
A&P will go with whatever gets them the most money. They are not in a position to call the shots. The vultures are circling. They have 1/2 of the vultures who were speculated &/or known to be after Harris Teeter.
If Kroger gets A&P they will have stores from NYC to Charleston. Kroger is the elephant in the room. If they get A&P they will fill in the Delaware Valley. If not, they can still move in from the northern-most Harris Teeters.
Exactly. It is crazy how far Kroger's reach is looking at this map. And note, the Harris Teeter stores are not included here. A nice chunk of the gap in the Northeast could easily (and cheaper than organically expanding) be filled by purchasing A&P, adding stores in NJ, NY, PA and CT.
Location: The place where the road & the sky collide
23,813 posts, read 34,657,307 times
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Quote:
Originally Posted by CH101
Exactly. It is crazy how far Kroger's reach is looking at this map. And note, the Harris Teeter stores are not included here. A nice chunk of the gap in the Northeast could easily (and cheaper than organically expanding) be filled by purchasing A&P, adding stores in NJ, NY, PA and CT.
I speculated a while ago that Kroger could go up from Richmond. Harris Teeter just made it a lot easier.
Teeter sold out because Publix is moving into Charlotte & would directly compete. At the same time Ingles, a chain about the same size as Teeter was moving in as well with nicer stores aimed at the middle class. Teeter is upscale. Harris Teeter was in the black which is why it commanded a high price.
When the dust settles from A&P, Philadelphia & South Jersey will get stores, most likely from Kroger. Then Kroger will turn back south & grab Winn-Dixie & Bi-Lo, which will give them Florida.
Location: The place where the road & the sky collide
23,813 posts, read 34,657,307 times
Reputation: 10256
Quote:
Originally Posted by CH101
Although an asset sale is very much possible, it seems their preferred option is to put the whole company up for sale. According to a supermarket industry consultant, "the market is at the beginning of a very ramped up mergers and acquisitions time", so it is not out of the question for someone to come in and scoop up the whole company. The WSJ mentions that a sale could "value the company at $1 billion or more". To put things into perspective, Kroger just recently announced a deal to buy Harris Teeter for $2.44 billion. And quoting the same supermarket industry consultant from earlier, "Money is cheap, and for supermarket chains looking for growth, mergers and acquisitions are the usual route."
Additionally Yucaipa Cos., which is the main shareholder of A&P, supposedly wants out fast. So again it appears their ultimate goal is to sell everything, including the "prime" northern division you mentioned.
Yes I understand a&p owns pathmark, they also own super fresh , and others, do you understand they are under different banners, what a&p will do is to sell off each banner . A&p will take any offer,they will sell bit by bit, and if they can find a big sucker to buy the company as a whole so be it.
I don't think you'll see a banner-by-banner sale. It'll be either the whole thing (which is most likely), or it will be divided up by market. Worst case scenario, individual stores will be sold off and the rest will close.
The problem is that, as weak as the company as a whole is, each banner is even weaker. All of them are doing poorly, and each banner alone doesn't have enough reach to attract buyers.
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