In a modern day story of free enterprise success - and one not needing any government supervision or money - the A&P grocery chain may throw off some market success to competitors while strenthening their own brand.
A&P filed for Capter 11 bankruptcy protection on Sunday. It is overextended and not performing well. This gives an opportunity for some of the other grocery lines like Food Lion, Stop & Shop, and Safeway to pick up some of the surplus locations, infuse cash back into A&P, and expand their own operations in a readymade location.
As a result, A&P will be less strapped trying to maintain so many locations and can focus on being more profitable in what they have left.
Folks, this is free enterprise at it's best. The market is governing this orderly transition and redistribution of locations, assets, and potential - no government involvement at all.
As a result, instead of a struggling, on-the-verge-of-folding A&P, the market will have a leaner, stronger A&P and stronger competition from Food Lion, Stop & Shop, and Safeway through their strategic acquisition of A&P assets,
Everyone wins here - the retailers, the consumers, the localities, and the marketplace.
───
For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
© Steve Hoffacker, 2010. All Rights Reserved.
Steve - You mean A&P wasn't too big to fail? Perhaps we could use them as an example to our leaders who don't understand how free enterprise works.
One would think A & P was to big to be allowed to fail.
Where was the Obama cash?
Who could imagine the system working in a crisis? We need a law! Shopper's should be required to shop at assign stores! Where is Harry Reid?
How can this be allowed?
Doesn't A & P sell Tyson's Chicken?
Why were A & P stock holders allowed to keep their stock.
We've got to protect the local consumers!
Can we trust other chains to fill the void?
We need a law!
Bill
Steve,
I wonder why we didn't take this over since A&P is one of the few union food suppliers.
Rich
Steve,
We had an A&P in Bellingham probably 40 years ago. They left and never came back.
Steve
No bail out money for A & P what's up with that?
Good luck and success.
Lou Ludwig
Should have happened to GM... without the unions corrupting the process and stealing money from entitled bond holders.
Like Richard said, notice one of the reasons A&P said it filed - labor costs.
And when they come out, what do you bet the new leaner chain has no unions?
John,
Good idea. :)
Steve
Bill,
Great responses. Thanks. :)
Steve
Rich,
Good question. :)
Steve
Steve,
They're not here anymore either. :)
Steve
Lou,
Hard to imagine, isn't it? :)
Steve
Lane,
Should have, but Obama didn't want it that way. :)
Steve
Jay,
We can hope so. That will be a very positive step. :)
Steve