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The Great A&P and the Struggle for Small Business in America [Hardcover]

Marc Levinson
4.4 out of 5 stars  See all reviews (45 customer reviews)

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Book Description

August 30, 2011
One of The Wall Street Journal's Best Non fiction Books of 2011.
 
From modest beginnings as a tea shop in New York, the Great Atlantic & Pacific Tea Company became the largest retailer in the world. It was a juggernaut, the first retailer to sell $1 billion in goods, the owner of nearly sixteen thousand stores and dozens of factories and warehouses. But its explosive growth made it a mortal threat to hundreds of thousands of mom-and-pop grocery stores. Main Street fought back tooth and nail, enlisting the state and federal governments to stop price discounting, tax chain stores, and require manufacturers to sell to mom and pop at the same prices granted to giant retailers. In a remarkable court case, the federal government pressed criminal charges against the Great A&P for selling food too cheaply—and won.
 
The Great A&P and the Struggle for Small Business in America is the story of a stunningly successful company that forever changed how Americans shop and what Americans eat. It is a brilliant business history, the story of how George and John Hartford took over their father’s business and reshaped it again and again, turning it into a vertically integrated behemoth that paved the way for every big-box retailer to come. George demanded a rock-solid balance sheet; John was the marketer-entrepreneur who led A&P through seven decades of rapid changes. Together, they built the modern consumer economy by turning the archaic retail industry into a highly efficient system for distributing food at low cost.

Frequently Bought Together

The Great A&P and the Struggle for Small Business in America + A & P:  The  Story  of  the  Great  Atlantic  and  Pacific  Tea Company  (NJ)  (Images of America)
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Editorial Reviews

Review

Praise for The Great A&P and the Struggle for Small Business in America
 
“Mr. Levinson has written an absorbing history of one company’s amazing rise—and what such success means in a nation with conflicting ideals about big business. It is more than a rich business history; it is a mirror to our own conflicting wants and visions of who and what we should be.” —The New York Times
 
“Mr. Levinson writes engagingly, and he exhibits no overt political brief. Anyone with a common-sense grasp of business practices will find the author's points clearly and fairly presented.” —The Wall Street Journal
 
“Levinson, who has burrowed deep in the archives, makes this story clear and compelling—and shows why A&P was both a boon to consumers and, in the words of an FDR-era federal prosecutor, ‘a gigantic blood sucker.’ Shades of Walmart?” —The Atlantic
 
“[A] book about a by-gone era that I enjoyed was The Great A&P and the Struggle for Small Business in America by Marc Levinson. It is about the rise and fall of the A&P grocery chain, once the largest retailer in the world, with 15,000 stores, and renowned for its high quality and low prices . . . But this is more than an economic story. It is a human story about a family that dedicated itself to making its business the best it could be—and how the death of the last member of that family was followed by A&P’s decline into oblivion.” —Thomas Sowell, Rose and Milton Friedman Senior Fellow on Public Policy, Hoover Institution
 
“[A] superb business study and an entertaining read.” —The Courier-Journal (Louisville, KY)

 

“The fleeting nature of success in business—even for companies that revolutionized their sectors—is among the many useful lessons of this book. A&P’s legacy is apparent every time we set food in a modern grocery store, even if the company itself long ago fell victim to many of the forces it unleashed.” —The News Tribune (Tacoma, WA)

“Levinson makes it read like a novel . . . A great study of responding to the need to adapt to market and economic pressures to survive.” —Booklist

“This is the kind of masterful business narrative that explains both the past and the present in an illuminating new light. Marc Levinson’s highly insightful story of A&P—and its opponents—is essential reading for all those who seek to understand the love-hate relationship Americans have with the oversized consumer economy of our own day.” —Nelson Lichtenstein, author of The Retail Revolution: How Wal-Mart Created a Brave New World of Business

“What a splendid book! The rise and fall of A&P provides a rare window into the American experience—not just the creation of the world's largest retailer but the transformation of a nation dominated by small shops and local merchants into one of massive chains, well-known brands, and aggressive discounters. The Great A&P and the Struggle for Small Business in America shows that even the largest corporate goliaths are not immune to the insistent forces of competition and change. No one could have told this riveting tale better than Levinson—a historian, journalist, and economist—whose crisp and compelling writing makes the narrative’s rich detail always run smoothly.” —Robert J. Samuelson, columnist for Newsweek and The Washington Post


Praise for The Box

“A classic tale of trial and error, and of creative destruction.” —Virginia Postrel, The New York Times

“A marvelous read for anyone who cares about how the interconnected world economy came to be.” —Neil Irwin, Washington Post

About the Author

Marc Levinson has a gift for discovering business history stories that cut to the heart of how industries are transformed. He did so brilliantly with the award-winning The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, which was short-listed for the 2006 Financial Times and Goldman Sachs Business Book of the Year Award.

Product Details

  • Hardcover: 384 pages
  • Publisher: Hill and Wang (August 30, 2011)
  • Language: English
  • ISBN-10: 0809095432
  • ISBN-13: 978-0809095438
  • Product Dimensions: 9.2 x 6.4 x 1.2 inches
  • Shipping Weight: 1.3 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (45 customer reviews)
  • Amazon Best Sellers Rank: #309,363 in Books (See Top 100 in Books)

More About the Author

Marc Levinson is an economist and historian specializing in business and finance. He was formerly finance and economics editor of The Economist, worked as an economist at a New York bank, and served as senior fellow for international business at the Council on Foreign Relations. For more information, check out his website at www.marclevinson.net.

Customer Reviews

Most Helpful Customer Reviews
29 of 31 people found the following review helpful
Format:Hardcover|Amazon Vine™ Review (What's this?)
"The Great A & P" drew me in for several reasons. It brings back nostalgia. As a child I made many visits to A & P in "Shop City" in East St. Louis. This book gave me the chance to learn the story behind the grocery, the Nancy Anne Bakery goods, the Eight O'Clock Coffee and other products that I saw so often. It brings something for the Trivia enthusiast. Now, when we are urged to buy cloth bags to the grocer, did you ever wonder when and why grocers started using paper bags? According to this book, it was because the cotton for cotton bags became unavailable during the Civil War. As a history buff I found the social and political history aspects intriguing. The narratives concerning the shift from full service to self service stores reminds me of my mother's story about having to wait at a store in Belleville while the clerk served adults and how her grandmother took her back and gave the clerk a tongue lashing about the disrespect shown to her representative. As a student of business I found the case study of how A & P became the world's largest retailer and then fell to having only a regional presence and the attempts to legislatively suppress chain stores to be very interesting. The sections dealing with anti-trust prosecutions provided a brief refresher course on topics I had not considered much since law school.

The story of A & P is a great one. Founded as a tea importer it gradually grew and morphed into a chain of grocery stores, manufacturing businesses, food wholesalers and, eventually, supermarkets. As in any business, management had to decide what to offer the customers: credit and delivery or neither, but low prices.
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15 of 16 people found the following review helpful
Format:Hardcover|Amazon Vine™ Review (What's this?)
This book interested me because I remember when the local A&P was "my" childhood grocery store. I never knew where it came from or why it disappeared. This book
reveals the inside story (as much as it can be traced since the company was fanatically secretive) from its murky origins before the Civil War, the development of its corporate culture as a company that wanted to sell the largest possible volume of groceries, and the failure of its leadership after the family that ran it for nearly a century was no longer in charge. After successfully reinventing itself four times and fighting off state and federal government's attempts to
destroy it, lack of innovation killed it off.

I had no idea it was the largest retail sales company in the world for so long, until it was surpassed by Sears in the 60s. But there was something about the place that seized the imagination when I was a child, much like Howard Johnson's.
The color scheme, the homeyness, the cleanliness were all fascinating.

The book also opens up the development of American commercial history for the last
century and a half, and the struggle between small, personal, local and VERY inefficient) businesses with larger chain stores. There were hundreds of thousands of tiny "Mom and Pop" grocery stores on every corner, each selling very few goods, in bulk, with no perishable meats or produce. There were also thousands of local food processors, wholesalers, etc., so that
food was expensive, and nutritious food was not easily available. A&P seems to have had a mission to drive down food costs to drive up their volume. It also created modern American agribusiness and food ways.
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12 of 14 people found the following review helpful
Format:Hardcover|Amazon Vine™ Review (What's this?)
I suppose one could gather from the title that this isn't a history of A&P to the present day. Even though the company is still officially the Great Atlantic and Pacific Tea Company and even though there is still a struggle for small business in America, this is really about the A&P's heyday, during which it was accused of trampling Main Street, much as WalMart is accused of doing today. It's a fascinating story and one that is not often told these days. (There is nothing new under the sun.) But it might have been instructive to hear more about A&P's downfall. This narrative essentially ends in the 1960s, when its downfall was underway, but we don't hear much about its retreat back to New England and its eventual bankruptcy, from which, as of this writing, it has yet to emerge.

Again: fascinating and recommended, but leaves you wanting more.
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7 of 8 people found the following review helpful
5.0 out of 5 stars One of the better histories on business entities August 3, 2011
Format:Hardcover|Amazon Vine™ Review (What's this?)
For 43 years, A & P was the largest company in the world.

That statement alone needs much more texts about this company than there are. But we have Levinson's work now and as a student of business history I have to report that it is very good. While what happens in the last years of it's life, after the founders are gone and the generation of non-family owners takes over is not delved into greatly, the rest of the tale is very well presented so that we not only see how A&P grows but also how America grows and how the two are part and parcel of each other.

A company started before the Civil War to sell tea in New York, grows to be the world's largest company for many years. The founder passes the baton to the Hartfords who grow the company into a national chain and fully explore the meaning of what a chain is.

While doing so, the company goes from defining what the local grocery store should be to what a chain and what vertical integration should be. Creating what becomes S&H or Green stamps and grocery stores. A&P has a vibrant place in history and Levinson tells a great deal about it.

Along the way we see how the ill run mom and pop grocery store (My grandparents had one run well enough to become a great profit center during the second world war) is revamped and gives rise to their success. The A&P doing so well to squeeze margin that they are the Walmart of their day and the government must come and regulate them in order to save the mom and pops. So many years of litigation that it becomes part and parcel of the american life as does the supermarket with the rise of the automobile. And with the success of the tactics that the A&P employs or invents.
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Most Recent Customer Reviews
5.0 out of 5 stars Great book
Great book, I really enjoyed it. Very well written and integrates insight of the managerial innovations that led to A&P's success with the political and social environment of an... Read more
Published 9 days ago by Marc Eckhert
4.0 out of 5 stars Striking parallels to Walmart
Not too many years ago,tha A&P was the dominant retailer in America.This is the story of its rise and fall.Much of the criticism against Walmart can be found here. Read more
Published 2 months ago by Bob Iannaccone
5.0 out of 5 stars Leave business alone
A good read. It is fun in a sick way to read the attacks on A&P and compare it to Walmart or Microsoft today the powerful A&P is gone, a loss to consumers, in their goal to make... Read more
Published 3 months ago by Glen Verber
3.0 out of 5 stars Reads a bit like a textbook - really enjoyed the first chapter
This book is EXACTLY the type of book I love. I was positive I would enjoy it, and I really wanted to. Unfortunately, the further into it I read, the more bored I became. Read more
Published 3 months ago by Colin A. Sanburg
5.0 out of 5 stars Picture of how Retail is impacted by Economics, Politics, and Societal...
Fascinating book, one that details the rise and fall of former retail/grocery behometh A&P. The easy reaction is that A&P was the Walmart of its day-which is true to a great... Read more
Published 3 months ago by S. Conner
5.0 out of 5 stars Wal-Mart at the turn of the century called A&P
Cautionary tale about the effect of government to control massive chain stores. The government could not stop them but mismanagement brought tribe greatest retail chain to... Read more
Published 4 months ago by Arthur L. Lodge
4.0 out of 5 stars It's SuperFresh!
I bought this book because my grandfather and his brother were A&P employees for much of their working lives. I had no idea that A&P was such a juggernaut of its day. Read more
Published 8 months ago by matt from philly
5.0 out of 5 stars The Great A&P and the Struggle for Small Business in America
Economist and historian Marc Levinson documents how New York's Hartford family turned a mid-19th century tea shop into the $1 billion Great Atlantic & Pacific Tea Company (A&P),... Read more
Published 11 months ago by Rolf Dobelli
5.0 out of 5 stars Important contribution
Everybody appreciates that Walmart occupies a formidable position in the U.S. retail industry. But how many can name the last company that commanded a similar market share? Read more
Published 11 months ago by Ed Soule
3.0 out of 5 stars Worth reading for those interested in retail
As an Australian, I had never heard of A&P before reading this book, but am glad I went and read it. Read more
Published 12 months ago by Bill Page - Ehrenberg-Bass Institute
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