Dive Brief:
- Pathmark, the once-prominent northeast grocer that went out of business in 2015 along with owner A&P, is making a comeback. Allegiance Retail Services LLC announced Thursday that a 49,000-square-foot Pathmark store is under construction in central Brooklyn, N.Y., and will open in late March or early April. The store is located on Albany Avenue in a previous Pathmark location
- Allegiance, operated by PSK Supermarkets LLC, is a cooperative that has 32 members operating 120 retail supermarkets in New York, New Jersey and Pennsylvania. The company, based in Iselin, N.J., purchased the intellectual property of the Pathmark name and associated marks back in 2016 and decided on the new location after a rigorous assessment of locations and its selling strategy. The company says it will assess the response to the Brooklyn store before announcing any new or renovated stores.
- Pathmark stores were liquidated and closed in 2015 following the bankruptcy of its parent company, The Great Atlantic and Pacific Tea Company, best known for its A&P supermarkets. By November of that year, all Pathmark stores were either closed or sold to competitors like Stop & Shop and ShopRite.
Dive Insight:
Pathmark, a chain known for its low prices, had been one of the top retail grocery banners in the Northeast for decades. Now Allegiance plans to revive the brand with a renewed focus on low prices and quality products.
The company says it purchased Pathmark in order to offer a retail brand to independent owners that could reach underserved consumers. It conducted a careful go-to-market analysis and developed physical requirements for each store, including a footprint of 30,000 square feet or more, available parking and being situated in a neighborhood that serves younger consumers and families.
Pathmark's website features photos from the store's renovation along with links to social media channels proclaiming the brand's rebirth. Hiring for the location will take place across three days next week. The site also advertises "Pathmark On The Go" online shopping that will be available when the store opens.
Allegiance, which supports independent supermarkets like Foodtown and D’Agostino, provides stores with marketing, advertising, technological and merchandising support, as well as a full line of private label items, including more than 1,000 SKUs under the Foodtown brand. Last fall, Gristedes joined the cooperative in a move to update its product line, particularly organics, and enhance its local assortment.
The northeast is already a competitive grocery market with big brands like Stop & Shop competing for space with discounters like Aldi. Pathmark will add another option to the mix, and could capitalize on its retro, neighborhood feel. Pathmark already resonates with New York and New Jersey shoppers, who no doubt still remember the stores from four years ago. The new location could bring back nostalgic feelings for past consumers and millennials alike who seek that “everything old is new again” vibe.
