A&P Focuses on Selling (Stores)
By George Anderson
A&P is looking to boost sales to get itself out of its current $1 billion debt dilemma.
The anticipated revenues, however, are not coming from selling merchandise but selling stores and other assets, says a report in the Star-Ledger of Newark, NJ.
The chain expects to receive $300 million from the sale of 24 stores and the company’s Eight O’Clock Coffee business.
Mark Husson, analyst, Merrill Lynch said the $300 million will only be a start. “They’ve got half their work done. They need to do this much again.”
The retail consultant Howard Davidowitz offered this glum assessment. “After Eight O’Clock coffee, after this store is sold and that store is sold, what do you do? You’re left with the problems you had before. You haven’t solved anything.”
Moderator’s Comment: What will it take to turn A&P
To borrow from The Grateful Dead, A&P will “need a
miracle everyday.” [George
Anderson – Moderator]