A&P reports bigger loss, focuses on Northeast

MONTVALE, N.J. The Great Atlantic & Pacific Tea Company announced that for the first quarter ended June 16, sales in the company's core Northeast operations were $1.68 billion versus $1.65 billion last year, with comparable-store sales increasing 1%. Total company sales for the first quarter were $2 billion, comparable to $2 billion in last year's first quarter. Total company net loss for the quarter was $43 million or $1.03 per share versus a loss of $6 million or 15 cents per share last year. This quarter's net loss of $43 million includes a loss of $125 million attributable to non-core operations in the Midwest and New Orleans, offset by a gain of $78 million from the sale of Metro Inc. shares.

Christian Haub, executive chairman of the board, said, "A&P's strategic transformation continued on all key fronts in the first quarter. Top and bottom line results in our core business were further improved, our strategy to concentrate our retail activities in the Northeast by divesting non-core operations moved forward, and the closing process of the proposed Pathmark transaction is proceeding as planned."

"During the quarter, we announced definitive plans to exit the Midwest and Southern markets, to focus all resources on growing our core Northeast business," Claus added. The Farmer Jack group ceased operating as of July 7, with 43 stores sold and negotiations continuing for the balance. The sale process is also moving forward for the Sav-A-Center division based in New Orleans, which we expect to conclude by this Fall.