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Grand Union (stores) - Wikipedia, the free encyclopedia

Grand Union (stores)

From Wikipedia, the free encyclopedia

Grand Union was a large supermarket chain based in Elmwood Park, New Jersey (later moving to Wayne, New Jersey) operating in the northeastern United States. It entered bankruptcy protection for the third (and final) time in 2000. The company, which operated about 200 stores at the time of its demise, was divided among competitors like Shaw's Supermarkets, Stop & Shop, Key Food, and Tops Friendly Markets. C&S Wholesale Grocers, a large distributor of grocery products, took over Grand Union's warehouse operations and kept a handful of stores in smaller communities under the name Grand Union Family Markets.

Contents

[edit] History

[edit] Origins

Grand Union started as the Jones Brothers Tea Company in 1872. By the 1930s it was one of the largest grocery chains in the United States.[1] The name "Grand Union" was inspired by the desire to "unite shoppers with low prices in a 'Grand Union of Value'" as described by company associate Elvin Sanders. Each aisle was named after a state, with Wisconsin representing the dairy aisle, Nebraska representing the corn aisle, and New York representing bagels, smoked salmon, and other Jewish foods. The store's mascot was Abraham Lincoln wearing a deli apron, and most stores featured a costumed Lincoln to accomplish deeds, talk to customers, and proclaim the general splendor of the Grand Union, and to urge them to "Save the Union" when the company faced economic hardship. The company also operated "Grand Way" stores in Florida starting in 1960. These stores were similar to today's super-centers as they combined a discount department store with a grocery store all under one roof. The grocery stores were later separated from the discount stores and sold to Winn-Dixie/Kwik-Chek.

[edit] Ownership by Sir James "The Red Raider" Goldsmith

British corporate raider Sir James Goldsmith acquired Grand Union in the early 1970s. Grand Union was a money loser during much of Goldsmith's time of ownership. The company, which was then a national chain, was forced to sell over most of its stores outside of the northeastern states during the early 1980s, such as its Florida, Texas, and Washington D.C. divisions. (However, the company did retain the Big Star Markets chain operating in the Atlanta metro region up until 1993) In the mid 1980s, Sir James Goldsmith brought in former Target Corp. executive Floyd Hall to manage the chain. Goldsmith also had world-renowned artist Milton Glaser complete a graphical redesign of the chain, which included the "red dot" theme. Through the new management under Hall, the chain was able to make record making profits for once throughout the late 1980s. Sir James Goldsmith sold the chain to Floyd Hall and a group of investors in 1988. The chain, however, was quickly resold.

[edit] 1989 acquisition by corporate raider Gary Hirsch

In 1989, investment banker Gary D. Hirsch, a partner in the firm Miller Tabak Hirsch & Co. acquired a portion of the Grand Union Company with Solomon Brothers. Hirsch had been looking to assemble a grocery empire on the east coast at the time, as he had also recently acquired Penn Traffic of Johnstown, PA, P&C Food Markets of Syracuse, NY and the Big Bear Stores Company of Columbus, OH in hostile takeovers. Hirsch assumed the position of chairman while Joseph McCaig became CEO. Floyd Hall left upon the acquisition. Under Hirsch's reign the company had been driven into serious debt and ran out of the necessary capital for store improvements and upgrades, making it difficult for them to compete with other better financed retailers. The company entered its first bankruptcy in 1995 and exited in 1996. After the reorganization, Hirsch resigned and sold off his stake in the company.

[edit] The J. Wayne Harris era

In 1997, Grand Union brought in the well-respected former A&P and Kroger executive, J. Wayne Harris to begin a turnaround of the ailing chain, which entered bankruptcy again in 1998. Harris attempted to turn around the Grand Union chain through the introduction of new store formats, such as "Hot Dot," a limited assortment store in the mold of Aldi and Save-A-Lot, "Grand Union Fresh Markets," an upscale gourmet concept, and "Mega Save," another discount format. None of the new concepts worked and Harris left the company in 2000 to oversee a turnaround of the Eckerd Corporation. Shortly after Harris's departure the company assumed large amounts of debt and entered its third bankruptcy, this time to be its last.

[edit] 2001 acquisition by C&S Wholesale Grocers

In 2001, C&S Wholesale Grocers, a New England-based wholesale food distributor, now one of the largest in the nation, was facing a huge loss of revenue because Grand Union was its largest customer at the time. If a non-C&S customer, such as Hannaford or Price Chopper, were to acquire most or all of the assets of the bankrupt retailer, it could have put C&S in serious financial risk themselves. To correct this problem, C&S opted to acquire the Grand Union chain themselves. In March of 2001, C&S sold most of the former Grand Union Co. locations to other grocery retailers, such as Shaw's and Pathmark, which use C&S as their primary distributor.

[edit] Grand Union Family Markets

An older Grand Union store still operating as of May, 2008.
An older Grand Union store still operating as of May, 2008.

That year, C&S opted to continue operating several of the Grand Union stores they were not able to sell under the modified Grand Union Family Markets name. (Still, most operating Grand Union stores still feature the old "red dot" logo on their facade, not the newer logo with Family Markets attached to the Grand Union name) Most of the remaining Grand Unions operate in rural towns in Vermont and portions of Upstate New York, particularly the Hudson Valley region below Albany. C&S closed off all of the remaining Grand Union stores in downstate New York and New Jersey. According to its website, GUFM still operates:

[edit] Locations

[edit] New York

In October of 2005, C&S's Grand Union Family Market division announced it would acquire 12 Tops Markets supermarkets in the Adirondack region of New York state. Ironically, these were Grand Union stores before Tops acquired them from C&S in 2001.

[edit] New Jersey

[edit] Vermont

US 7 S - was P&C, closed in 2004 US 7 N and US 4 E- still operating

[edit] Connecticut

[edit] Pennsylvania

  • Milford - still open
  • Matamoras - currently being demolished; movie theater planned for July 2008

[edit] References

  1. ^ Grand Union by Groceria

[edit] External links


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