Report: A&P Recovery On Track

NEW YORK CITY-The Great Atlantic & Pacific Tea Co.’s turnaround may not be shaping up rapidly, but the grocer’s executives are steering the company in the right direction, according to a Lehman Brothers report. “We are very excited about the steps being taken by the new management team and the enthusiasm they demonstrate for making A&P a better company,” the report reads.

A group of Lehman’s retail analysts met with Eric Claus, A&P’s new chief executive officer as of late last year, and toured the company’s new Fresh Store concept in Midland Park, NJ. The prototype has expanded offerings in perishable and prepared foods as well as upscale non-food products than other A&P stores, the report notes.

A&P management told Lehman that it could remodel 140 of its 400 units into Fresh Stores within the next two years, up from the four it has currently revamped. Stores in higher-income areas will take precedence the portfolio’s remodel.