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A&P, PATHMARK DEFY STOCK MARKET SELL-OFF NEW YORK Shares of A&P and Pathmark defied the global sell-off of stocks last week that saw the Dow Jones Industrial Average plunge 3.3% in a single day. As shares around the world slid on fears of a looming recession and other factors, A&P and Pathmark continued to rise until the two companies long thought to have been discussing a merger finally revealed

A&P, PATHMARK DEFY STOCK MARKET SELL-OFF

NEW YORK — Shares of A&P and Pathmark defied the global sell-off of stocks last week that saw the Dow Jones Industrial Average plunge 3.3% in a single day. As shares around the world slid on fears of a looming recession and other factors, A&P and Pathmark continued to rise until the two companies — long thought to have been discussing a merger — finally revealed that such talks were under way (see Page 1). A&P, Montvale, N.J., saw its stock rise nearly 10% on Tuesday, while Pathmark Stores, Carteret, N.J., was up much less. Several other food retailers were down through most of the week (see Page 52.)

SAFEWAY TO LAUNCH ‘EATING RIGHT’ PRODUCT LINE

NEW YORK — Safeway plans to introduce a new proprietary brand — Eating Right — in the second quarter that could rival the success of the O Organic line it introduced last year, Brian Cornell, executive vice president and chief marketing officer for the Pleasanton, Calif.-based chain, said last week in a presentation at the Bear Stearns 13th Annual Retail, Restaurants & Consumer conference here. According to Cornell, Eating Right will target the needs of consumers driven by health and dietary considerations. “It will be one of the first brands to provide multi-category diet solutions,” he explained. The O Organic line of 150-plus SKUs accounted for $160 million in sales during its first year. Safeway plans to launch the first TV advertising for O Organic later this year.

WAL-MART MAY BE MULLING NEW FORMAT: REPORTS

BENTONVILLE, Ark. — Wal-Mart Stores here may be contemplating a new, small-store format to challenge Tesco's Fresh & Easy Neighborhood Market in the United States, following the installation of David Wild as the executive in charge of evaluating business opportunities, according to European trade reports. Wild, who will be based here, is a former international managing director of Tesco and a former senior executive at Metro AG, the chain that Wal-Mart sold its German stores to last year. Wal-Mart confirmed to SN last week that Wild has relocated to the U.S. to evaluate business opportunities for the company — a role the European sources said could involve developing a new format to challenge Tesco's planned U.S. entry.

WILD OATS EXECUTIVES GET INCENTIVE TO STAY

BOULDER, Colo. — Wild Oats Markets said last week it will pay Greg Mays, who is currently serving as interim chief executive officer, an additional $50,000 per month to remain with the chain until it is acquired by Whole Foods. He will also receive a $750,000 bonus when the deal is completed, as well as 30,000 shares of stock. Other senior executives — including Freya Brier, senior vice president and general counsel; Sam Martin Jr., senior vice president, operations; and Roger Davidson, senior vice president, merchandising and marketing — will receive cash payments of $45,373 each.

TESCO NAMES U.S. AD AGENCY, EYES COLORADO

LOS ANGELES — Tesco USA said it has hired Deutsch LA, the West Coast branch of Interpublic Group, to handle advertising and marketing for the Fresh & Easy Neighborhood Market stores it will begin opening later this year. Simon Uwins, Tesco USA's chief marketing officer, told SN, “As we put together a marketing team with different kinds of skills, we felt Deutsch LA was on our wavelength.” He said Tesco does not yet know exactly where its first U.S. store will open. “The whole question of permits makes it difficult at the moment to know where it will be,” he told SN. Separately, Tesco has long-range plans to expand beyond California, Arizona and Nevada into Colorado, according to a report in Fortune magazine. The publication said Tesco had registered the name “Tesco Stores West” in Colorado last year. “We do not plan to open any stores in Colorado in the near future, but we never say never,” a Tesco spokesman told SN.

TAGS: Walmart