Montvale, New Jersey-based grocer A&P said its second-quarter fiscal 2010 sales were $1.9 billion versus $2.1 billion in last fiscal year’s second quarter. Comp store sales, meanwhile, decreased 6.6%. Although Sam Martin, president and CEO, called the results “disappointing,” he said the new management team and a comprehensive turnaround plan in place, and has begun to implement that plan.
In addition to other plans call for an increased focus on Private Brand development. A&P said it would be offering customers “additional variety and value by enhancing and expanding its private label brands, including America’s Choice, Food Basics and The Food Emporium Trading Company.”
A&P has received much acclaim over the last few years for its innovative brand development and design, with brands designed by the NYC based strategic branding firm United leading the way. It will be interesting to see if A&P can leverage VIA ROMA, Greenway and Hartford Reserve while continuing to develop its Private Brand portfolio. Private Brand may not be enough to save the once great retailer but perhaps they can leverage it to their advantage and create a dramatic story that leads to a dramatic sale. Should we now call the strategy a “Duane Reade”?