Pathmark
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Company type | Subsidiary |
---|---|
Industry | Grocery |
Founded | 1968Woodbridge, New Jersey,United States | in
Fate | Bankruptcy (original) |
Headquarters | , U.S. |
Area served | Northeastern United States |
Products |
|
Brands |
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Services | Bakery, Deli, Banking, Groceries |
Parent |
|
Website | pathmark.com |
Pathmarkis a supermarket brand owned by Allegiance Retail Services, aretailers’ cooperativebased inIselin, New Jersey,USA. Pathmark currently has one location inEast Flatbush, Brooklyn,New York, which it has operated since 2019.
From 1968 until 2015, Pathmark operated a chain of supermarkets throughout thenortheastern United States.The chain was founded by Supermarkets General, which previously operatedShopRitestores as a member of theWakeferncooperative and chose to go into business for itself as a direct competitor. The company would eventually take the Pathmark name and would later be purchased by competing supermarket chainA&Pin 2007.
Before its initial closure, Pathmark previously operated stores in New York, New Jersey, Connecticut, Pennsylvania, Delaware, and Maryland. In 2007,Supermarket Newsranked Pathmark No. 31 in its annual "Top 75 North American Food Retailers" based on Pathmark's 2006 estimated sales of $4.1 billion (~$5.96 billion in 2023).[1]Based on 2005 revenue, Pathmark was the 67th largestretailerin the United States.[2]
Pathmark is well known by baby-boomers and millennials for its radio and television commercials starring character actorJames Karen,who was the chain's spokesperson for more than 20 years. Pathmark's original spokesperson wasArlene Francis,who appeared in its commercials beginning almost immediately after Pathmark left the ShopRite cooperative.Peter "Produce Pete" Napolitanohad starred in many of the company's commercials from 2001 until 2009.[3]
After A&P filed for Chapter 11 bankruptcy in 2015, Pathmark’s remaining stores were liquidated and closed. In 2016, Allegiance Retail Services purchased the Pathmark name and all intellectual property with the intention of reviving the well-known brand. The brand’s first new location opened in Brooklyn, New York on April 12, 2019. The company has stated that they will see how this first location performs before opening additional locations.
History
[edit]Supermarkets General and Pathmark
[edit]Pathmark was formed out of theWakefern Food Corporation,parent company ofShopRite,Wakefern was both a wholesale operation and a retail operation; among its members was a subgroup, Supermarkets Operating Co., inUnion, New Jersey,[4]formed in 1956 by Alex Aidekman, Herb Brody, and Milt Perlmutter.[5]This company operated ShopRite stores; in 1963 it branched into non-food retail by acquiring Crown Drugs.
In 1966, Supermarkets Operating Co. and General Super Markets (another subgroup within Wakefern) merged to become Supermarkets General Corporation, with Perlmutter as president.[5][6]At this time, Supermarkets General operated 75 ShopRite stores across Connecticut, Delaware, Maryland, New Jersey, New York, and Pennsylvania, with annual sales of about $420 million (~$3.01 billion in 2023). Supermarkets General achieved high volume by opening large stores in densely populated areas and keeping prices low on both nationally branded-goods and private-label items.
In an attempt to diversify, Supermarkets General bought Genung's Inc., a White Plains retailer that operated the Howland's andSteinbachdepartment stores in 1967. It also acquired the New Jersey-basedRickelhome centers in 1968 andHochschild Kohnstores of the Baltimore area in 1969.[5]
In 1968, Supermarkets General left the Wakefern cooperative, renaming its ShopRite stores Pathmark.[5]Pathmark's stores included not only supermarkets (33 of which had a drug department with a pharmacy) but 11 freestanding drugstores and 11 gasoline stations.
Pathmark's 81 supermarkets were accounting for about 85 percent of Supermarkets General's sales and 80 percent of its earnings in 1969.
1970s
[edit]The number of Pathmark supermarkets had reached 91 in October 1971, with 38 others either a gas station or a drugstore.[5]In May 1972, many Pathmark locations began operating 24 hours a day. It was the first New York-area supermarket chain to have stores with overnight hours.[7]By February 1973, 90 of the company's 99 stores were open around the clock. That year, Pathmark instituted a price freeze on hundreds of products to help combat rising costs.[8]
In September 1974, Pathmark introduced the use ofcomputer scannersatcheckout countersin its Middlesex Mall location. At this time, the company operated 104 Pathmark stores.[9]By 's profit margins slipped to as lowhad as 0.18 percent of sales.[10]
In 1975, Pathmark, as part of a negotiated deal with theUnited Farm Workers,agreed to lead a delegation of East Coast-based supermarket chains to lobby theCalifornia Legislatureon the passage of the first legislation in the nation that provided a mechanism for farmworkers to choose union representation by secret ballot. The legislation ended the conflict between theTeamstersand UFW.
In 1977, after relativestagnation,Pathmark opened its first Super Center in Jericho on Long Island.[10]These larger, discount grocery store which also offered health and beauty aids, small appliances, and videotape rentals. These 50,000-square-foot (4,600 m2) units generally were expanding and renovating existing stores. By December Pathmark had pharmacies in 81 of its 103 supermarkets, horticulture departments in 64, bakery departments in 60, and "mini-bank branches" in 13. In its 1977 annual report, Supermarkets General claimed its sales per store were the highest in the industry. "Pathmark does more than three times the business in a store only 33% larger than the industry average," the report said.
In its 1978 annual report, Supermarkets General claimed Pathmark had become the top supermarket chain in theNew York area,with a 15-percent sales share. Twelve of its 109 stores now were Super Centers. That year, Pathmark sales volume was $1.8 billion; the chain contributed 82 percent to corporate profits. About 60 percent of the volume was generated in stores opened, enlarged, or substantially remodeled in the mid-1970s. Perlmutter died in 1978 and was succeeded byLouis Lowensteinas chief executive officer of Supermarkets General.
After about a year Lowenstein was removed and replaced by vice chairman Herb Brody in 1979.[11]
1980s
[edit]In February 1982, Leonard Lieberman was named president and chief operating officer of the Supermarkets General Corporation and Herbert Brody became vice chairman and chief executive officer.[11]That month, the company agreed to acquirePantry Pride,which operated 150 supermarkets in Florida, Georgia, and Virginia.[12]However, the deal fell through by April when shareholders sued to stop the sale.[13]
Pathmark sales reached $2.8 billion (~$7.48 billion in 2023) in 1982, when it was the nation's 10th-largest supermarket chain.[14]In 1983, Pathmark opened its first Manhattan superstore, a 42,600-square-foot (3,960 m2) unit, in Pike Slip, nearChinatown.At this timeathmark locations included pharmacy departments and 27 hadBarnes & Noblebookstore departments. Pathmark continued to dominate Supermarkets General's sales and operating profits, accounting for 87% of sales and 83% of operating profit, respectively.[10]
In January 1984, 7,000 butchers and delicatessen clerks at 336 Pathmark, ShopRite, Grand Union, and Foodtown supermarkets in New Jersey and New York voted to go on strike during contract negotiations.[15][16]A tentative agreement was able to be reached after a 26-day strike.[17]The chain was still No. 1 in the New York metropolitan area in 1985, with a 12.5 percent sales share.
In order to foil a takeover bid byDart GroupCorp., Supermarkets General agreed to be acquired byMerrill LynchCapital Markets Inc. and it's own senior managers for $1.58 billion in April 1987. Pathmark president Kenneth Peskin replaced Leonard Lieberman as chairman and chief executive officer.[18]To help pay down related debt, the company sold 25 of its Heartland and Pharmacity drug stores in New Hampshire and Massachusetts to theMelville Corporation,which operatedCVSat the time.[19]
Although corporate sales reached $6 billion (~$12.8 billion in 2023) in fiscal 1989 (which ended January 28, 1989), the 51-unitRickelsubsidiary was performing poorly, while Pathmark, now with 142 stores, had slipped to third place in the New York area. Many Pathmark units had become, according to aForbesarticle, "unkempt, dirty, and outmoded." The article goes on with "continues to stock scores of the dreary no-frills offerings customers have shunned for years." Merrill Lynch fired Chief Executive Kenneth Peskin, replacing him with Jack Futterman. The only bright spot for the parent company was its 66-unit Purity Supreme division, consisting of Massachusetts grocery and convenience store chains acquired in 1984. This division was sold in 1991 for about $265 million (~$529 million in 2023). (Supermarkets General's department stores had been sold in 1986.)
Supermarkets General lost money in each fiscal year from 1988 to 1993, and sales volume annually during FY 1989 to 1993. In fiscal 1993 it lost a record $617 million on sales of $4.34 billion, mainly reflecting a $600 million writedown of goodwill (the premium paid in excess of assets) in the 1987 buyout. The company's interest payments, averaging between $160 million and $180 million yearly on its debt, were hampering its efforts to modernize its stores and keep pace with competitors. Pathmark now had 146 supermarkets, 33 freestanding drug stores, and 7 distribution-processing facilities.
In November 1989, Robert E. Wunderle, the company's chief economist and vice president of public affairs, was found shot to death in a Rockaway drainage ditch. Police theorized it was a mob hit related to Wunderle's role with union negotiations, but the case was never solved.[20][21][22]
1990s
[edit]Supermarkets General introduced its new concept, Pathmark 2000, in 1992. These stores were up to 64,000 square feet and included traditional grocery items as well as beauty products.[23]In March 1993, Supermarkets General announced it was planning to take the company public, though this was later cancelled. It also spun off Rickel Home Centers and sold it a year later.[24][25]That October, in a corporate reorganization, Supermarkets General Corp., a subsidiary of Supermarkets General Holdings Corp., changed its name to Pathmark Stores, Inc.
In 1995 there were 27 Pathmark 2000 stores, including some remodeled locations. The stores emphasized perishables, including produce, seafood, baked goods, flowers, plus health and beauty aids, in hoping to compete with drug store and discount competitors. These goods had higher profit margins than packaged groceries. Pathmark 2000 stores also featured a customer service desk for product returns, video rentals, film processing, andUPSdelivery; and restrooms with tables for changing diapers. There were 44 such stores in May 1996, with 53 in February 1997.
In 1994, Pathmark added to its private-label products, introducing an upscale line, Pathmark Preferred, to its generic and mid-tier brands. Pathmark's over 3,300 private-label items were accounting for about 24 percent of its sales. In late 1995, Pathmark launched Chef's Creations, which offered a menu of entrees, side dishes, and salads, made daily by a team of chefs. In late 1996, Pathmark introduced Chef's Creations To Go, fresh, prepackaged meals for takeout, offering choice entrees and side dishes in microwavable containers. An outside manufacturer was preparing these meals to Pathmark's specifications.
By summer 1994, Pathmark regained popularity amongNew Yorkers,according to one survey that found it to be the city's most popular supermarket chain. About one-sixth of city residents were regular Pathmark shoppers; most of those cited its low prices. The top-ranking chain inBrooklyn,theBronx,andStaten Island,Pathmark now was operating 17 superstores in the city. Meanwhile, Pathmark's eight Connecticut units had declining sales each quarter. In 1992, two Connecticut supermarkets were converted to a new deep-discount drug store format, Pathmark Super-Drug, which reduced the perishable selection but greatly increased the store's general-merchandise offerings, as well as added a warehouse-sized package section. By 1994, another four Connecticut Pathmark supermarkets were converted. Pathmark Super-Drug stores were modeled after similar chains, such asPhar-Morand RX Place (operated by Woolworth).
Pathmark was named 1995 "Pharmacy Chain of the Year" by the magazineDrug Topics,the first time a supermarket had won the award. Of Pathmark's 142 supermarkets, all had pharmacies except 6 found in shopping centers where there were lease restrictions. According to Pathmark, it was the leader in filling prescriptions in the New York area, and was participating in over 200 major insurance plans. Prescriptions accounted for nearly 7 percent of Pathmark's sales volume in 1994. Futterman, Pathmark'schief executive officer,is, in fact, a registered pharmacist.
In June 1995, Pathmark reduced its pharmacy operations, selling 30 of its 36 freestanding drugstores toRite AidCorp. for $60 million (~$110 million in 2023) in order to concentrate on its in-store pharmacies.[26]Pathmark's remaining 6 drugstores, operating under the "Super Drug" banner in Connecticut, were closed in 1995 and 1996. In September 1998, Pathmark's two remaining Connecticut supermarkets, in Bridgeport and Norwalk, were closed, signaling Pathmark's exit from New England.
Construction began in August 1997 on Pathmark's controversial $14.5 million (~$25.6 million in 2023) supermarket on125th Streetin Manhattan's East Harlem. This 53,000-square-foot (4,900 m2) unit was the largest supermarket inHarlem,and had been bitterly opposed by owners of neighborhoodconvenience stores.This Pathmark was expected to generate hundreds of construction jobs, and within the store, which would include a pharmacy and aChasebank branch. Pathmark was planning its biggest Bronx store in 1998: a 55,000-square-foot (5,100 m2) unit on 10 acres (40,000 m2) in the blighted area east ofCrotona Park.
Supermarkets General cut its losses in fiscal year 1994 (ending January 29, 1994, which the company defined as 1993) to $17 million (excluding extraordinary items and accounting changes) on net sales of $4.21 billion. It had its first profitable year in fiscal year 1995 (ended January 28, 1995) since fiscal year 1987, earning $10 million (not counting a $13 million credit for prior losses) on $4.21 billion in net sales. Pathmark sales were $3.84 billion and $3.79 in fiscal 1994 and 1995 respectively.
In fiscal year 1996 (ending February 3, 1996), Supermarkets General had net income of $77 million on sales of $3.97 billion. Pathmark's sales were $3.85 billion. In fiscal year 1997 (ending February 1, 1997), the parent company had a net loss of $20 million on sales of $3.71 billion. This included a charge the company took for the upcoming sale of 12 unprofitable Pathmark stores, mostly in southern New Jersey. Pathmark's supermarket sales came to all but $9 million of the corporate total. Same-store sales decreased 2.8 percent from the previous fiscal year, primarily due to heavy competition. James Donald, Futterman's successor as chief executive officer, laid off over 200 employees at Pathmark'sWoodbridge, New Jerseyheadquarters in March 1997.
Woodbridge was home to Pathmark's corporate headquarters, and distribution facilities for dry groceries, meat, dairy, and delicatessen products, plus a distribution facility for frozen food inDayton, New Jersey,a complex for dry groceries inNew Brunswick, New Jersey;and one for general merchandise (health care, beauty products, pharmaceuticals, and tobacco) inEdison, New Jersey.It had processing facilities for delicatessen products inSomerset, New Jerseyand for banana ripening inAvenel, New Jersey.Pathmark's stores ranged from 26,000 to 66,500 square feet (6,180 m2) in size. All but five were either Pathmark 2000 or Super Center stores, and all but seven included a pharmacy.
In October 1997 Pathmark announced that C&S Wholesale Grocers ofBrattleboro, Vermontwould take over its distribution facilities and become the chain's supplier for almost all groceries and perishables. Pathmark received $50 million from the deal, which was used towards its $1.47 billion debt.[27]
In 1999,Royal Ahold,a Dutch supermarket company which operatedEdwardsstores in the New York area, agreed to a $1.75 billion deal to acquire Pathmark. Under the terms of the deal, Edwards Super Food Stores would become Pathmark stores.[28]The sale was abandoned after the FTC rejected Ahold's offer to divest overlapping stores, saying the offer would "not preserve competition" in the New York area.[29]Ahold ultimately cancelled the deal and later announced that it would rebrand Edwards stores as Stop & Shop.[30]
2000s
[edit]Because the FTC did not allow Pathmark's acquisition plans, it filed forbankruptcyin July 2000, recovering early the next year. Pathmark, in 2001, bought sixGrand Unionsupermarkets that Ahold was unable to buy. In 2005, theYucaipa Companiesbought a 40 percent stake in Pathmark.[31]
In February 2007, Pathmark partnered withWild Oats Marketsby adding Wild Oats-brand private label goods to the 141 Pathmarks. Approximately 150 organic and natural products were included in the partnership, among them:Italiansodas,balsamic vinegar,organicfruit spreads, andflatbreadcrackers.[32]
The A&P Takeover
[edit]Later in 2007, Pathmark's competitorA&Pbought it for $665 million (~$942 million in 2023);[33]pending shareholder approval, along with complying withanti-trustlaws. Conditions for the acquisition included the sale of six Pathmarks to competitors. Pathmark and A&P remained separate banners. Store level staff were not affected, while buying and back-office functions were consolidated. The merger was approved on December 3, with the sale completed that month.
Pathmark Sav-A-Center
[edit]In spring 2008, Pathmark introduced a "price impact" store concept, under the Pathmark Sav-A-Center brand. This format was introduced to remodeled stores inIrvingtonand SouthEdison, New Jersey.[34]TheSav-A-Centername had been used for A&P stores in the 1980s, and for an A&P-ownedchain of storesin theNew Orleansarea which were sold in 2007.
After the concept was tested in the two Northern New Jersey stores, A&P announced the conversion of 16 Pathmark Super Centers, plus 8 of the 13 Philadelphia-area A&PSuper Freshstores to the Pathmark Sav-A-Center banner. A&P eventually rolled out the Sav-A-Center branding to Pathmark's website and circulars.
In 2009, several changes were made to Pathmark. Among them, the NorthEdison, New Jerseystore was closed, and a former A&P in nearbySouth Plainfieldopened as a Pathmark Sav-A-Center. The North Plainfield Pathmark also closed as part of this store consolidation. Meanwhile, A&P was updating its former Super Center branding by retrofitting older stores with new interior decor to comply with its Sav-A-Center branding.
2010s
[edit]In autumn 2010, A&P closed 25 stores, including some Pathmark stores.[35]
In August 2011, a Super Fresh store opened in the Northern Liberties section ofPhiladelphiain place of a planned Pathmark, reflecting the parent company's diminished faith in the Pathmark banner.
A&P's bankruptcy filings
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/4/46/Pathmark-Closing.jpg/220px-Pathmark-Closing.jpg)
On December 12, 2010, A&P filed for Chapter 11 bankruptcy protection, citing assets of $2.5 billion and debts totaling $3.2 billion. The company emerged from bankruptcy protection on March 13, 2012, making its six supermarket divisions, including Pathmark, private.
In August 2012, an employee of the Old Bridge, New Jersey Pathmark opened fire on his coworkers with an assault rifle while working an overnight shift. Two employees were killed before he took his own life.[36][37]
On July 26, 2013, theWall Street Journalreported that A&P is seeking to sell the company after emerging from bankruptcy in 2012.[38]
On July 19, 2015, A&P filed for Chapter 11 protection for the second time in less than five years. By November 25, 2015 all Pathmark stores were either closed or sold to other chains such asAcme Markets,Stop & Shop,Key Food,ShopRite,and other competitors. The 156-year history of A&P also disappeared.[39]
![](https://upload.wikimedia.org/wikipedia/commons/thumb/f/f0/Former_Pathmark_-_Linden%2C_NJ.jpg/220px-Former_Pathmark_-_Linden%2C_NJ.jpg)
Slogans
[edit]- Shop Pathmark, the store for value(1968–1978)
- All Signs Point to Pathmark for One Stop Shopping(1978–1981)
- You've got Pathmark. Who could ask for anything more?(1978–1981)
- We're Pathmark, We're All-Ways There!(1981–1982)
- Savings all over means savings over all(1982–1984)
- You're the one who's number one(1984–1988)
- Pathmark, More Value For Your Dollar(1988–1990)
- Count on Pathmark For Savings That Count(1991–1992)
- Count on Pathmark For Savings That (Really) Count(1991–1994)
- Pathmark, Your Place to Really Save(1993–1994)
- Shop Smart, Pathmark Smart(1994–1997)
- Pathmark, The way it should be!(1997–2000)
- Pathmark, Take a Fresh Look(2000–2002)
- Get a Little More at Pathmark(2002–2004)
- Pathmark, It's about time(2004–late 2006)
- Go Fresh. Go Local.(2006–2008)
- Fresh For Less(2008)
- Count On Pathmark When It Counts(2008–2009)
- Pathmark! Save all over the place!(2009 – April 2010)
- Where the only prices are low prices.(April 2010 – January 2011)
- Your Store For Value!(January 2011 – March 2011)
- Great Food. Great Value.(March 2011 – November 2015)
- We priced it right (April 2019 – Present)
- Pathmark makes life easier.(January 2019 – Present)[40]
References
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Supermarkets Operating Co., 1416 Morris Ave., Union, N.J.,
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- ^Hanley, Robert (November 18, 1989)."Grocery Official Is Found Slain By Rural Road".The New York Times.ISSN0362-4331.RetrievedAugust 29,2024.
- ^Considine, Bob (July 12, 2011)."Cold Case: Nearly 22 years later, Westfield supermarket exec's killing still baffles authorities".The Star-Ledger.RetrievedAugust 29,2024.
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- ^Pathmark Stores Introduce Hundreds of Wild Oats Brand Specialty Products,Wild Oats Markets, Inc., February 6, 2007.
- ^Mestanza, Jean-Pierre. "N. Bergen Pathmark to close"Hudson Dispatch Weekly;September 1, 2010; Pages 1 and 5
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External links
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