The Rise and Decline of the First Widely Known Grocery Store in the 1960s: The AP Atlantic and Pacific Tea Co.

The grocery retail landscape of the 1960s was dominated by a few major brands that revolutionized food shopping. The AP (Atlantic and Pacific Tea Co.) was one of the pioneering stores that set the stage for the modern supermarket. From its early days as a full-service store to its eventual decline, the AP's journey offers insights into the evolution of the grocery industry.

Early Beginnings: Full-Service Stores (1859-1920s)

The AP Atlantic and Pacific Tea Co. has a rich history dating back to 1859, when it served as a full-service grocery store. The company specialized in wholesale tea sales but quickly expanded to offer a wide range of products. In the early 1900s, the concept of self-service began to take root, but it was not until the 1920s that chain stores became a dominant force in American food retailing.

During this period, the AP's stores typically stocked only a few hundred items. However, they were known for their high-quality and consistent products, such as the famous Classic and Dark brands of Fruit Cake produced by Jane Parker. The company operated over 37 of its own bakery plants, making it the largest baker in the United States at the time.

Early Adoption of Self-Service (1920s-1950s)

The late 1920s and early 1930s saw the introduction of self-service counters, which significantly changed the shopping experience. However, the AP was hesitant to fully embrace this format, as it required significant capital investment. In 1936, the company opened its first "supermarket" in Braddock, Pennsylvania, but it remained a cautious approach.

Other regional chains such as Piggly Wiggly, Safeway, and Wegmans were also experimenting with self-service formats. By the 1950s, self-service had become increasingly popular, and the AP's dominance in the grocery market began to wane. The term "AP" became synonymous with a large grocery store, reflecting its status as a national brand.

National Brand and Consolidation (1960s-1970s)

By the 1960s, the AP was a well-known brand, but it still faced competition from other major chains like Sainsbury's in the UK. In the US, the Co-op, Sainsbury's, and Tesco were beginning to achieve national recognition, but the AP remained the dominant player in many regions.

During this period, the AP began to expand its product range, introducing fresh meats and produce alongside dry grocery items. They also became one of the largest food manufacturers in the nation, producing well-known brands such as Ann Page, Jane Parker, and Eight O’clock Coffee. The company operated over 10,000 "economy stores" by the end of the decade, but it was still hesitant to fully transition to supermarkets.

Transition to Supermarkets (1930s to 1970s)

The shift towards supermarkets was largely spearheaded by regional chains like the King Kullen and Big Bear stores in New York and New Jersey. The AP's first supermarket was opened in Braddock, Pennsylvania, in 1936. However, the company was slow to invest in this format, and it was not until the late 1960s that they began to expand their supermarket operations.

The AP Superstore model, introduced in 1972, became the peak of this trend. These stores included specialty departments and offered a wide range of products under one roof. By the 1970s, the AP had over 15,000 stores operating under various names such as AP, AP Super Foodmart, Waldbaum's, Food Emporium, and Pathmark. The company was geographically limited to New York, New Jersey, Connecticut, Pennsylvania, Maryland, Delaware, Michigan, Louisiana, Mississippi, and the District of Columbia.

Decline and Bankruptcy (1980s-2010s)

The decline of the AP began in the 1980s. As competition increased, the company struggled to maintain its market share. By the 2000s, the AP's store count had dwindled to just over 400. The company faced financial difficulties due to increased competition, changing consumer habits, and a legacy of high store counts.

In 2015, the AP filed for bankruptcy, with the intention of liquidating all its assets. Many of the company's stores were sold to other retailers such as Albertsons, ACME, Ahold, Stop Shop, and Key Foods. The final AP locations closed in 2016, marking the end of a 156-year retailing tradition.

Despite its decline, the AP left a lasting impact on the grocery industry. Its approach to product manufacturing, self-service formats, and employee relations set precedents that continue to influence the retail sector to this day.

Labor Relations and Employee Benefits

The AP had a strong labor union that brought many benefits to its employees. Regular hourly rate raises, restrictions on hours, guaranteed overtime, regular breaks, and health care insurance were standard even for part-time workers. Full-time employees had access to a pension, which further solidified the company's reputation as a caring employer.

These benefits played a crucial role in maintaining employee satisfaction and loyalty. Even during periods of financial strain, the company maintained its commitment to providing a supportive work environment, which contributed to its longevity and influence in the industry.