A&P Says Pathmark Integration Going Well

A&P Chief Executive Christian Haub said at the Bear Stearns 14th Annual Retail, Restaurants & Consumer Conference in New York that the "back-office" integration, including converting operating systems and letting some employees go, will be completed within six months.

"The integration is right on track," Haub said. "We have not experienced anything unexpected on the positive or the negative side."

A&P agreed in March to buy Pathmark for about $679 million. The deal closed in early December.

Haub also gave some details about changes that will be made to existing Pathmark stores. He said A&P likely won't need to replace equipment or fully renovate the stores, but that it will put a renewed focus on value through in-store displays. Haub also said the company would introduce freshly cut vegetables and fruit to Pathmark's produce department.

At the conference, Haub also said he hasn't seen consumers plagued by high gas prices and the weak housing market begin to "trade down", or choose lower-priced items.

He added that inflation has not been much of a concern yet at A&P's stores.

"We read more about inflation and see more about inflation on TV" than in the company's own business, he said.

Inflation has been a concern at other grocers since many have had to increase prices to offset higher costs for produce, grain, protein and dairy.

A&P shares fell 69 cents to $26.56 in afternoon trading.