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Grand Union (supermarket)

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Grand Union Family Markets
Company typePrivate
IndustryFood wholesale
FoundedJones Brothers Tea Company, 1872
Key people
Rick Cohen, Chairman & CEO
Chris Kreidler, Executive VP & CFO
C&S Wholesale Grocers
WebsiteGrand Union Family Markets

Grand Union is a supermarket chain operated by C&S Wholesale Grocers. The company, originally based in Elmwood Park, New Jersey (later moving to Wayne, New Jersey) operated mostly in the northeastern United States but their reach extended into the Midwest at times. Currently, the chain is known as Grand Union Family Markets, and have 31 locations (22 in New York, 6 in Vermont, 1 in Connecticut, 1 in Pennsylvania, 1 in Massachusetts).

History

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.[2] 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.

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.

1989 acquisition by 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, Pennsylvania, 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.

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.

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.

A Grand Union store in Johnson, Vermont.

References