A&P announces fiscal results, restructuring plan
The Great Atlantic & Pacific Tea Co Inc. (A&P) announced its financial results for the fiscal 2004 fourth quarter and year ended Feb 26, 2005. The supermarket chain also announced plans for a major strategic restructuring.
Sales for the fourth quarter of fiscal 2004 were $2.56 billion, compared with $2.72 billion for the fourth quarter of fiscal 2003. Comparable-store sales were flat versus one year ago. The loss for the 2004 fourth quarter was $0.15 per share, compared with a loss of $1.56 per share in the prior year.
A&P's board of directors has authorized management to pursue a strategic restructuring under which the company will focus on growth in its core northeastern United States markets. The company is pursuing these initiatives:
-- Exploring strategic transactions to unlock the value of A&P Canada.
-- Planning the divestiture of its Farmer Jack and Food Basics operations and support facilities in Michigan and Ohio.
-- Continuing the rollout of its fresh and discount retail formats throughout its core Northeast markets and seeking additional locations for development.
-- Pursuing ways to improve labor productivity, and produce reductions in operating, supply chain, and administrative costs.
