A&P Nor’easter

MONTVALE, N.J —A&P is preparing to complete its geographic consolidation by selling off its Sav-A-Center division in Louisiana. In doing so, the supermarket operator will completely tie its fate to the region directly surrounding its New Jersey headquarters and overwhelming concentration in the Mid-Atlantic states.

A&P announced late last month that it had reached the advanced stage of negotiations for its 21 Sav-A-Center stores based in Louisiana.

A&P declared it was optimistic that a single buyer would emerge for the Sav-A-Center operations, one who is committed to keeping the business going in troubled New Orleans.

The Sav-A-Center sale caps off a long retrenchment. Over the past three years, A&P has divested its Canadian operation, opened up the bidding for its midwestern Farmer Jack stores and acquired the New Jersey-based Pathmark supermarket chain.

By consolidating in and around the Middle Atlantic, and revitalizing its stores in the region, the company hopes to establish itself as a multiformat operation that can reach from the affluent to lower income consumer groups. A&P’s top-end operations, including its urban Food Emporium and suburban Fresh stores, have been significantly upgraded around perishable food and service departments. A&P continues a significant remodeling program to bring all its stores up to the current prototype standards. “We will have 80 stores upgraded and expanded in the next two to three years,” said Sal Baio, vp, Fresh.