A Family of Supermarkets

A Family of Supermarkets

……with Fresh Thinking for 150 with Fresh Thinking for 150 YearsYears

Fresh Thinking for 150 Years

Fresh Thinking for 150 Years

St. Joseph’s UniversityThe Patrick M. McCarthyExecutive Lecture Series

St. Joseph’s UniversityThe Patrick M. McCarthyExecutive Lecture Series

Eric ClausPresident & C.E.O.

A History of Innovation A History of Innovation

150 Years in the Making…

America's Grocery StoreA&P extended its operations from NYCto the West Coast and became the first national supermarket chain in the U.S.and pioneered many innovative concepts that set trends and satisfied customers

A History of Leadership A History of Leadership

150 Years in the Making…

A&P Lead the WayIn 1880, A&P introduced the first private label product — baking powder and private manufacturing became an important aspect of its business and by the 1920s, had opened its own factory, packing plant and bakery with private brands

A&P attributes much of its early customer recognition to its advertising and promotional activities. It launched the original customer-loyalty program in the late 1800s with premiums and savings coupons

A History of Excellence…A History of Excellence…

Where you'll always find exceptional Freshness, Quality and Value…

A Family of SupermarketsA Family of Supermarkets

…and Our Brands…and Our Brands

Where We Were: The A&P 2004 Landscape

Where We Were: The A&P 2004 Landscape

U.S. CompanySales:

Number of

Employees:

Number of

Presidents:

Number of VPs:

Number of

Directors:

EBITDA: 1.55%

Operating Income:

Core Market

Canada

Mid-West

New Orleans

Where We Were: The A&P 2004 Landscape

Where We Were: The A&P 2004 Landscape

U.S. CompanySales:

Number of

Employees:

Number of

Presidents:

Number of VPs:

Number of

Directors:

EBITDA: 1.55%

Operating Income:

Core Market

Canada

Mid-West

New Orleans

Discount FormatDiscount Format

Closed underperforming stores

New positioning and banner re-branding

Targeted locations to ethnic customer

Targeted merchandising to ethnic demographics

Optimized pricing and product offer

Rationalized SKUs

Reduced labor costs

Substantially reduced store expenses

Dramatically increased comp store sales

Today’s StoresToday’s Stores

SPSF:EBITDA:

$100

0.0%

$100

0.0%

$100

0.0%

$100

0.0%

$100

0.0%

$100

0.0%* Excludes Liquor stores

Number of Number of StoresStores

45

96

16 11

98

142

LI & NYC NJ & South Gourmet Discount A&PConventional

A&P FreshProjects