A&P takes another step towards reorganization.(Great Atlantic & Pacific Tea Company, Inc. )(Brief Article)

Food Institute Report, The, December, 2004

The Great Atlantic & Pacific Tea Company, Inc. announced the next step of its reorganization. The initiative, affecting the company's U.S. business only, will reduce overhead costs by an estimated $50 million during fiscal 2005 and an additional $25 million in fiscal 2006. In addition to substantially improving efficiency, A&P said the reorganization will strengthen senior management control, focus local banners strictly on operating and customer service execution, and promote the rollout of its fresh and discount retail strategies.

Last week, A&P laid off dozens of corporate employees due to combining functions between its U.S. banners, reported Supermarket News (Dec. 9). A&P declined comment to Supermarket News, but John Niccolai, president of United Food...

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