Wednesday, August 18, 2010

Changes in Long Island Retail. What does it mean?

Recently, an article in Newsday spoke of a Pathmark grocery store in Garden Parkbeing closed. This, along with 25 other stores from The Great Atlantic & Pacific Tea Co. (A & P, who also owns Waldbaums, Pathmark, and Food Emporium) will be closing in the next year. (See Link Below)

http://www.newsday.com/long-island/nassau/a-p-to-close-garden-city-park-pathmark-slash-jobs-1.2215386

The store in question has been a staple in the Garden Park community for quite some time. One commenter said they were a 3rd generation Pathmark shopper. This begs the question, "What has changed in the shopping climate of Long Island that would make A & P want to close these stores?"

One easy answer would be the merging of multiple food chains. When stores like A & P, Waldbaums, and Pathmark live under the same corporate umbrella, there is no need for them all to serve the same market. Keeping both stores in the same market would be corporate cannibalism, an act of deliberately competing against oneself. The article does cite a possible reason for these store closings as proximity to other corporate stores.

It's also possible that stores like Wal-Mart, Target, and other mass-appeal chains have taken market shares from these chains. Clearly, before these mergers, all three of these food store chains were surviving off the same market. When other players join the "grocery game," the court may just become too crowded. Grocery chains downsized, considerably, when BJs and CostCo (which merged with Price Club in 1993) began prevelancy in the 1990s.

Other innovations in grocery shopping may also be hurting the sales of these stores. Stop n' Shop, another Long Island grocery presence, for example, is partnered with Pea Pod, an online grocery experience. There, shoppers can place orders online and recieve them at their doorstep! Other delivery companies like Omaha Steaks and Golden State Fruit specialize in meats and produce, respectively. I must admit I've tried and enjoyed them both!

So, what do you think this means for Long Island retail? How will this effect your day to day life? Will your job (or future job) be impacted if retail stores are less prevelant?

No comments:

Post a Comment