Launchpad Republic

2Gorillas and Guerillas

One hundred years ago, John Hartford and his brother George sat atop one of the largest empires in the world, and certainly the largest in the Eastern United States. The Great Atlantic and Pacific Tea Company (A&P), founded in 1859 and largely taken over by their father, George, in the late 1870s, had by 1919 become one of the five largest companies in the world, with sales topping an astounding $1 billion. With over 15,000 stores (the most of any company in history until 1990), its own manufacturing capacity, and private brands, the company dwarfed its competitors in the grocery business. Its largest competitors, West Coast–based Safeway and midwestern Kroger's, were less than half its size. And the Hartfords, who still controlled most of the company stock, were among the richest men in the world.

A&P had achieved its success with an aggressive strategy that emphasized increasing volume and reducing costs and prices, upsetting the norms and practices of the local provisions retailers. The company focused on high‐volume items, cut out expensive middlemen and wholesalers to source items directly, and developed its own in‐house brands in areas such as coffee and baked goods. A&P used its powerful distribution network to speed inventory turnover, add efficiency to the supply chain, and enhance its marketing clout by relying less on promotional trading stamps and expensive national brands. The company also capitalized on demographic trends – increasing numbers ...