News

A&P shifts focus to new initiatives as third-quarter sales drop

BY Antoinette Alexander

MONTVALE, N.J. Battling a challenging food retail market, A&P is changing its go-to-market direction and working on a number of initiatives to provide customers with better value, service and quality products. The news came as the grocer posted a drop in third-quarter same-store sales and a wider loss from continuing operations.

“Since assuming the role of interim CEO, I have launched efforts to assess all aspects of our business and to develop initiatives to improve our performance in the short term. During this important process, we have been fully engaged with Yucaipa and have leveraged their significant skills and industry expertise,” stated Christian Haub, executive chairman of the board. “We have determined that our previous merchandising and marketing programs did not meet the consumer’s changing needs.”

He noted that the quarter “marks the transition to a different approach,” and he helps improved performance in the coming months.

Sales for the third quarter ended Dec. 5 totaled $2 billion versus $2.1 billion last year. Same-store sales decreased 5.8%.

Reported loss from continuing operations was $502.4 million, which includes charges of $412.6 million for goodwill, trademark and long-lived asset impairment, and $16 million for adjustments related to financial liabilities.

Loss from continuing operations in the comparable period of the prior year totaled $3.8 million, and included income of $23 million for adjustments related to financial liabilities.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Actavis goes up for sale, peaks interest of major Rx companies

BY Alaric DeArment

NEW YORK Icelandic generic drug maker Actavis is for sale and could go for up to $10.8 billion at a time when many generic drug companies find themselves targets of acquisitions.

The fifth largest maker of generic drugs in the world, Actavis became a private company in 2007 after action by majority stakeholder Novator, led by Icelandic billionaire Thor Bjorgolfsson.

According to Reuters, a number of large drug makers could end up buying the company, including Pfizer, Sanofi-Aventis, GlaxoSmithKline and Novartis.

In other news, the Food and Drug Administration announced Friday that it had filed a consent decree and was awaiting the United States District Court for the District of New Jersey’s entry of a permanent injunction forbidding Actavis’ U.S. subsidiary, Actavis Totowa, from manufacturing drugs in its New Jersey factories until the FDA decides the factories are in compliance with current good-manufacturing practice requirements.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Winn-Dixie opens prototype store with expanded grocery departments, pharmacy

BY Michael Johnsen

JACKSONVILLE, Fla. Winn-Dixie Stores on Wednesday opened a prototype store in its existing SaveRite location here featuring everyday low pricing on thousands of items a la Walmart, as well as monthly locked-in specials and special price-drop items in a warehouse format.

“In designing this concept, we spent a great deal of time reviewing our customers’ shopping preferences,” said Dan Portnoy, Winn-Dixie chief merchandising and marketing officer. “We wanted to make sure that the new store would be a true fit for the neighborhoods it serves. … We focused only on those items and services that were most important to our customers, and, as a result, we were able to aggressively cut costs and lower prices throughout the store.”

In addition to enhanced produce and meat departments, the 48,000-square-foot store also has an in-store pharmacy where customers will find 30-day supplies of more than 400 generic drugs for only $3.98 every day. Other features include newly designed warehouse-style shopping carts and popular staple items available for purchase by the case.

SaveRite closed the store Jan. 6, allowing time for associates to work through the afternoon and evening to lower thousands of prices. The company welcomed area leaders and residents to a preview on Tuesday evening where SaveRite donated $5,000 to Paxon Improvement Association. To celebrate the store’s new format, SaveRite will also host a Family Fun Event on Jan. 10.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES