The Pathmark banner is set to return to New York later this year when a 49,000 square foot store currently under construction in Brooklyn opens its doors. Pathmark, which was one of the most innovative supermarket chains in the Northeast from the 1970s through the early 2000s, exited the landscape in 2015, victim of then parent company A&P’s bankruptcy.
During its bankruptcy proceedings in August 2015, A&P liquidated all of its retail operations and Allegiance Retail Services, LLC, purchased the intellectual property of the Pathmark name and associated marks to increase the number of banners available to coop members, and, more importantly, to develop a format to target a specific and under-served consumer segment.
After the purchase of the Pathmark name, Allegiance Retail Services began a brand review and market analysis, then developed a business plan and refined the format’s operating principles. Additionally, the Iselin, NJ based co-operative set up guidelines related to a ‘go-to-market’ operating strategy, physical requirements, and the experience needed to potentially be designated as a Pathmark operator. Some of the physical requirements associated with the Pathmark format include a store measuring at least 30,000 selling square feet; a full parking lot with easy ingress/egress; and a local consumer-base which aligns with the profile associated with Pathmark’s past success.
The new location in Brooklyn, which will be owned and operated by PSK Supermarkets, meets all the criteria set by Allegiance, and in fact, this storefront had been a successful Pathmark location for many decades. Aside from meeting all the physical requirements, the demographics and life-stage of consumers proximate to 1525 Albany Avenue, Brooklyn, matches with the profile developed to be serviced by a Pathmark as it has a disproportionate number of area residents who are millennial families with one or more children, who demand wide variety, strong promotions, everyday values and ingredient-based products.
Although very optimistic about this banner’s future, Allegiance has said it will assess the response to this first unit before announcing any additional new or retro-fitted existing units.