A&P Sells Metro Stake
Montvale, N.J., The Great Atlantic & Pacific Tea Co. (A&P) said Monday it sold all of its 11.7 million shares of Metro Inc. supermarket chain for $347 million as part of its financing to buy Pathmark Stores Inc.
Metro Inc., based in Canada, will buy 1.5 million of the shares.
Great Atlantic & Pacific first said it would buy Pathmark in March for about $679 million. The deal is expected to close in December.
BJ’s reports 8% net sales increase
NATICK, Mass. BJ’s Wholesale Club on Tuesday reported a net income of $22.7 million for its third quarter, a 24% jump over the prior year’s period.
The wholesaler, who experienced a $1.4 million loss in 2006 because of post-tax and discontinued operations of the company’s ProFoods Restaurant Supply clubs, is seeing nothing but green this year.
Net sales for the third quarter were approximately $2.1 billion, an increase of 8% over the third quarter of 2006, while comparable-club sales grew by 3.4%.
According to the company, strong categories included televisions, small appliances, cheese, coffee, dairy, frozen produce, juices, meat, milk, office supplies, produce, soda and water. Weaker categories over last year included apparel, automotive and tools, cigarettes, pre-recorded video, residential furniture and tires.
BJ’s ceo Herb Zarkin said sales of perishable foods rose 8%—a product category carrying high profit margins that also lifted second quarter results. “Perishable foods represent our greatest opportunity to capture market share from supermarkets,” he noted.
Ross Stores names Froman to board
PLEASANTON, Calif. Ross Stores announced on Wednesday that John W. Froman has been elected to its board of directors, effective immediately.
Froman served as president and ceo of NAMCO Pool & Patio from 2005 to 2007. Prior to that, he spent almost 20 years in various management roles at Circuit City, eventually serving as its evp and coo. He began his retail career over 30 years ago at Avon Products, Inc.
“We are delighted to have John Froman join our board of directors,” said vice chairman, president and ceo Michael Balmuth. “We believe that his extensive business knowledge and in-depth retail management experience will make him a valuable resource for the Company and its stockholders.”