The president and CEO of A&P has vowed to make the US retailer “great, again” after the company’s net losses ballooned in its most recent financial year.
Ron Marshall, the former boss of book-chain Borders, who was appointed A&P chief in January, insisted yesterday (5 May) that the business could be turned around, despite a net loss of US$876.5m in the 12 months to 27 February.
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A&P, which runs 429 stores in eight states, reported a net loss of $143.3m a year earlier.
“The good news is that we have identified several critical issues within our organisation that will lead us back to market prominence,” Marshall said as A&P published its annual results. “We are committing our undivided attention to clarifying our brand identity in our principal banners, completing the integration of the Pathmark acquisition and maximising supply chain cost improvement opportunities.”
Marshall added: “The fixes in our company are attainable and the initiatives are in place today to provide us the path forward. We are gaining ground in better understanding our customer, developing the skills critical for our success, making prudent reinvestments in our business and reducing costs through a process of continuous improvement. Our sole mission is to make The Great Atlantic & Pacific Tea Company great, again.”
The last year has been a tumultuous one for A&P, with growing losses, the integration of 2007 acquisition Pathmark and changes in its executive team.
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By GlobalDataFull-year sales fell from $9.5bn to $8.8bn, while the retailer swung to an adjusted operating loss of $22m. A year earlier, A&P booked adjusted income from operations of $72m.
Comparable-store sales in the fourth quarter fell 4.8%; in the third quarter, they were down 5.8%.
