A&P; Will Shed Stores, Renovate Others

Great Atlantic & Pacific Tea Co., the country’s eighth-largest grocery company, will sell or close 127 poorly performing stores and renovate remaining stores in an effort to boost business. The company operates 907 A&P;, Waldbaum’s and Food Emporium stores. It also will open 175 to 200 larger markets over three years. To start the overhaul, the company plans to spend $400 million in fiscal 1999. The Montvale, N.J.-based grocer is trying to compete with giants Kroger Co. and Albertson’s Inc., which have lower costs because of greater purchasing and distribution power. A&P;’s plans will result in charges of as much as $222 million in fiscal 1999. The store closings will take place throughout the U.S. and Canada. A&P; also will sell its Richmond, Va., division and consider selling all or part of its Atlanta division. A&P;’s shares fell $1.63 on the New York Stock Exchange, closing at $25.44.