Ken Green and A&P Part Ways

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Ken Green and A&P part ways

October 2, 2005

Continuing its restructuring and downsizing, the Great Atlantic & Pacific Tea Co. Inc., based in Montvale, NJ, ended its employment relationship with Ken Green, vice president of produce merchandising, as well as a number of other people at that level, on Monday, Sept. 26.

Reached by The Produce News on Wednesday, Sept. 28, Mr. Green confirmed that he and A&P had "parted company on Monday after 40 years" with the firm. A&P declined to comment. Mr. Green said that he also was not at liberty to discuss the situation according to the terms of his severance agreement.

The Produce News learned that numerous vice presidents of merchandising in charge of other departments were let go at the same time. Earlier in the month, A&P had announced another restructuring at the senior executive level. At that time, Bob Panasuk was replaced as senior vice president of merchandising by Stephen Slade. Mr. Panasuk had been the immediate boss of Mr. Green and the other vice presidents of merchandising who were let go on Sept. 28. A&P announced that move on Sept. 6, when Chief Executive Officer and President Eric Claus said of Mr. Panasuk, "We thank Bob for his contribution to A&P in the U.S. and Canada over the past 10 years, and wish him the best in his future endeavors.

While Mr. Green would not comment on his specific situation, he said that it is common knowledge that A&P has downsized significantly in recent months. The chain sold its Canadian division and has put other divisions up for sale. Mr. Green indicated that the company had become essentially an East Coast chain, and senior management believes that it does not need the extra level of merchandising executives represented by Mr. Green and the others.

The roots of A&P date back to 1859. A&P was truly one of the early national U.S. chains. A company history shows that it operated almost 14,000 stores with sales topping $437 million by 1925. The

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store format was small, but once "super markets came onto the scene in the 1930s, A&P adapted. By 1950, it was the largest supermarket chain in the United States, selling about 10 percent of the nation's food at retail. It consolidated many of its stores in the 1950s, but sales growth continued. In the 1960s and 1970s, A&P closed hundreds of its smaller under-performing operations. The firm rebounded in the 1980s and acquired a number of other chains including Wisconsin-based Kohl's Food Stores in October 1983, Canada's Dominion Stores Limited in 1985, New York's Shopwell/Food Emporium and Waldbaum in 1986, and Detroit-based Borman's, operating under the name Farmer Jack, in 1989.

By the mid-1990s, A&P operated a little more than 1,000 stores with an average size greater than 34,000 square feet. Since the turn of the new century, the chain has been in another downsizing mode, leaving it with its current size of only 427 stores. It is no longer one of the top 10 retailers in the country in terms of size or sales volume. The chain maintains eight retail banners -- A&P, Waldbaum, A&P Super Foodmart, The Food Emporium, Super Fresh, Farmer Jack, Sav-A-Center and Food Basics -- which include conventional supermarkets, food and drug combination stores, and discount food stores. A&P employs almost 43,000 people, and its sales volume is in the $11 billion range.

Mr. Green's career had survived the many ups and downs with the firm. He told The Produce News that he started with A&P as a box boy while he was in high school in 1965, and has remained in the company's employ ever since, with the exception of a one-year stint with the Department of Defense. He worked for the company through his high school and college years, and then took a buying position in Kansas City after completing his education. "I didn't expect to stay in this business, but I did, he quipped.

Mr. Green worked in the Kansas City and Chicago divisions in a variety of upwardly mobile positions through the 1970s. In 1980, he transferred to the Montvale headquarters, working exclusively in a produce position. Two years later, he became vice president of merchandising and produce procurement. He has remained in charge of the produce department for the chain ever since.

Looking down the road, the longtime retailer said that he wants to stay in the produce industry, but is not necessarily looking only for a retail job. There just are not that many jobs at the senior merchandising level, he said. "I'm lucky that I don't have to jump into anything right away. I have received many calls from various people, and I am looking at what's available.

He added, "I never thought I'd be a consultant, but I've been told that there are lots of opportunities to do that. I also believe that there are lots of shippers that could use East Coast representation in the sales area, and I am looking at that also.

Mr. Green said that although he has handled other departments over the years for A&P, "my passion is with fresh produce, and that's where I'd like to stay.