The Food Emporium

20 Livingstone Avenue Dobbs Ferry, New York 10522 U.S.A. Contact: (914) 826-2300 Fax: (914) 826-2378 Website: http://www.Thefoodemporium.Com.

The wholly owned subsidiary of Great Atlantic & Pacific Tea Company, Inc., Founded in 1919, has sales of $720 million and employs 4,000 people. They operate convenience stores and supermarkets, excluding grocery stores.

The brand’s greatest strength lies in its choice of locations, perhaps in Manhattan’s market where it is associated with high quality among consumers. Emporium Food, launched in the late 1970s, has found its niche populated by many others since then, thanks to its innovative format. The chain also employs in-house chefs to perform cooking demonstrations. In addition to its specialty shops such as Floral Shoppe, Bakery Corner, Seafood Cove, and Deli Corner, Emporium Food stocks a wide variety of expensive grocery items and gourmet staples. It operates approximately 36 upscale supermarkets in the greater New York City area, with almost half of them located in Manhattan. Emporium Food is a subsidiary of A&P Company, a Great Atlantic & Pacific Tea Company, and is based in Dobbs Ferry, New York.

Principal Competitors

D’Agostino Supermarkets, Inc.; Gristede’s Foods, Inc.; And Pathmark.

Key Dates:

A&P purchases Shopwell in 1986. The corporation inaugurates its inaugural New Jersey store in 1997. Shopwell introduces its Food Emporium layout in 1979. Daitch modifies its name to Shopwell Inc. In 1973. The grocery store franchise expands to 103 locations in 1962. Daitch Crystal Dairies acquires the supermarket chain of Shopwell Foods in 1955.

New Ownership in the Mid-1980s

During the 1980s, A&P Canada acquired Dominion Foods to strengthen its position in the growing food chain industry. Instead of scrapping the idea, they chose to develop a similar concept called Emporium Food Bazaar. The company expanded its Fresh Super chain and concentrated its efforts in the East, closing more than 2,500 stores. Despite facing difficult times and losing around $500 million, the company managed to make a comeback in the 1970s. P&A launched a massive supermarket chain known as the “carry-and-cash grocery” economy in the 1950s, which grew out of their first retail tea shop opened by George Gilman and George Huntington in Manhattan in 1912. Since 1859, P&A had been in business, and that is why the company decided to add Emporium Food to its portfolio. They picked up 25 Shopwell stores, three Center Value stores, and two dairy and distribution centers. Despite skepticism from rival supermarket executives, Rosengarten negotiated the sale of Shopwell for $64 million, which was accepted by the Great Atlantic & Pacific Tea Company.

Rosengarten Glen decided to work for A&P at its headquarters in Montvale, New Jersey, after the relationship between A&P and the Rosengartens soured quickly. A&P filed a lawsuit in early 1987, accusing the Rosengarten brothers of overstating the value of the company, which led to an overpayment of $9 million. In response, the executives of the Shopwell company, countered by suing A&P for breach of consulting agreements and employment contracts, resulting in damages amounting to $8 million.

Company Perspectives:

Experience the delights of a genuine food lover… Each and every day!

The Emporium Food format in New York City remained focused and nothing materialized in other major cities such as Washington, D.C., Philadelphia, and Chicago as upscale neighborhoods to export the Emporium Food name. In an attempt to transfer the Emporium Food format outside of New York City, A&P opened two stores under the Kohl’s Emporium Food banner in Milwaukee and Dominion Emporium Food in Canada. In 1990, as part of a $450 million capital spending program, A&P opened a handful of other stores in New Canaan, Connecticut, and other locations in New York City, expanding its formats. The first Emporium Food was built by A&P from scratch and would be followed by a few years of expansion. Another development under A&P was the reconfiguration of Bazaar Food stores, with two Emporium Food stores opening under the Shopwell banner. The following year, A&P purchased the chain and tucked it into New York Metro A&P’s, becoming the Emporium Food chain.

The future of the Emporium Food chain was somewhat uncertain. The company’s successors struggled to return to health and were forced to close several markets and stores. After less than two years, she resigned from her job to pursue other interests, and A&P suffered a severe setback. However, within 15 months, she was able to return the company to profitability. Elizabeth Culligan, a veteran in the pharmaceutical industry, turned into an outsider in the A&P industry and once again struggled in the 21st century. There was no reason to believe in the original concept of Emporium Food, as it did not have enough money from its parent corporate chain to fund its necessary growth and expansion on a large scale. However, the stores had carved out a local customer base. The excitement that accompanied the launch of the Emporium Food chain had long since waned. In 1997, Emporium Food moved across the Hudson River to Fort Lee, New Jersey, and there were no more stores in New Jersey. Over the next 20 years, the size of the Emporium Food chain grew by just a dozen units.

1919 Origins

Within a year, the company underwent a significant period of expansion, with nine more stores being added and seven new stores being opened. During this expansion, the company merged with Shopwell and Daitch, receiving stock in the process.

The company lost $800,000 in revenue in 1976, and despite this setback, it opened seven stores in Massachusetts and Vermont. In later years, the company changed its name to Shopwell Inc. In 1973, the company attempted to run a package liquor store called Daitch’s, which included a shopping center in Westport, Connecticut known as Plaza Shopwell. Additionally, in 1970, the company opened convenience stores called Shop-Quik as part of its attempt to launch a chain. Despite this, the company’s growth was not focused on, and it reached its peak in 1962 with 103 supermarket chain stores under the name Daitch’s.

Shopwell stores were patronized by customers because of their convenient locations. Market research conducted by the company revealed an unpleasant truth – there was no discernable image of Shopwell stores. In order to reduce costs, the chain decided to close stores located in unprofitable areas and allowed leases to expire. Martin Rosengarten, the active control over his sons who were in their thirties, reduced the number of vice-presidents to 12. This reduction in vice-presidents became known as the “spaghetti chart” in company lore. The chart listed 33 vice-presidents below the top three, with no one pointing to them. When asked who they reported to, they pointed below them. In a management meeting in 1979, the company reached a turning point. The Rosengartens realized that to succeed as a regional chain, Shopwell needed to focus. Following their failure in New England.

In 1979, Shopwell’s made the timely decision to introduce the Food Emporium format, following the example of other supermarkets that at best offered a small gourmet section. The concept had already been perfected and pioneered by Byerly Foods in Minneapolis in 1973. The idea of the Food Emporium format derived from these observations: the Rosengartens realized that no supermarkets in the area were engaging in much high-end marketing, leaving that market to smaller stores like Zabar’s and Balducci’s. It not only made sense to cater to affluent customers, but the remaining stores were primarily situated in wealthy neighborhoods, such as Manhattan’s Upper East Side and Westchester County. The chain was reduced in size during this process.

According to press reports, Martin Rosengarten, the owner of Emporium Food, did not support the idea of converting six Shopwell stores to the new format. Nevertheless, his sons pressed on with the transition without difficulty.

Mr. Catsimatidis of Red Apple states that it is a lavish and unnecessary display to satisfy the bank. A few individuals in the supermarket industry believe that they are not actually interested in selling. However, the expenses associated with conducting business in New York City were higher and profit margins were slim. According to Crain’s, the older Shopwell stores were a significant burden. The Shopwell stores were faced with the expiration of 30- and 40-year leases, as well as an increase in rent from $5 per square foot to over $50. An industry consultant describes the Shopwell stores as small and pitiful. Despite the fact that the trend in the industry, even in urban markets, is towards larger and newer stores, the Food Emporium stores may have been costly to establish. They required a financial investment before becoming profitable. According to Crain’s, Shopwell had $38.7 million in current liabilities, $40.5 million in long-term debt, and assets worth $39.8 million. John A. Catsimatidis, CEO of the Red Apple supermarket chain, as quoted by Crain’s New York Business, states, “We considered it and decided not to proceed… They have beautiful stores, but the amount of debt is too high.” Insiders, their families, and other major shareholders accounted for 38 percent of Shopwell’s stock. This group agreed not to buy or sell shares or engage in any voting arrangements until June 30, 1986. According to press reports, this allowed management to find a suitable buyer, although it was far from certain. In 1986, the Rosengarten brothers announced their intention to sell the company, following their father’s retirement the previous year. Due to these and other factors, Shopwell incurred a loss of $3.4 million in 1985, despite generating sales of $464 million. A One Stop Shop cash-and-carry store opened in 1984 but closed that same year. Shopwell also attempted to enter the economy sector of the supermarket trade, but this endeavor was unsuccessful. It took approximately 18 months for a Food Emporium store to become profitable, which is longer than the industry average of around eight months. Over the next two years, an additional seven stores would be converted, but the conversions proved to be costly. By the end of 1983, Shopwell had transformed 17 out of its 55 stores into the Food Emporium format.