1. 2 0 0 7 A N N U A L R E P O RT

2. A&P IS NOW
A TRUE
CONTENDER
2007 HAS BEEN A MOMENTOUS YEAR FOR A&P, NOT ONLY DID THE COMPANY
DELIVER IMPROVED OPERATING RESULTS BUT IT ALSO COMPLETED THE
STRATEGIC TRANSFORMATION OF CREATING A FOCUSED NORTHEAST
CONCENTRATION, ENVISIONED AND PLANNED OVER THREE YEARS AGO. BACK
IN 2004 THE COMPANY REALIZED IT HAD TO TRANSFORM ITSELF IN ORDER
TO GROW STOCKHOLDER VALUE AND SUSTAIN A SUCCESSFUL BUSINESS
FOR THE LONG TERM. IN ORDER TO DO SO, THE COMPANY EM BARKED ON A
PATH TO ACHIEVE THE LEADING POSITION IN CORE NO RTHEAST MARKETS BY
DRIVING CONSOLIDATION, CONSEQUENTLY DIVESTING NON-CORE MARKETS,
WHILE AT THE SAME TIME IMPLEMENTING A FORMAT DRIVEN STRATEGY
AND ELIMINATING REDUNDANT OVERHEAD BY CREATING A CENTRALIZED
ORGANIZATION FOCUSED ON DRIVING TOP LINE SALES GROWTH AND
ACHIEVING IMPROVED PROFITABLITY.
“ONLY A MAN WHO KNOWS WHAT IT IS LIKE TO BE DEFEATED CAN REACH
DOWN TO THE BOTTOM OF HIS SOUL AND COME UP WITH THE EXTRA OUNCE
OF POWER IT TAKES TO WIN WHEN THE MATCH IS EVEN.”
-MUHAMMAD ALI
1 2

3. Dear Fellow Stockholders:
I am very pleased with our progress this past year, as the HIGHLIGHTS OF THE YEAR INCLUDE:
The Pathmark integration provided the basis for our
Company has realized numerous accomplishments that latest format innovation, Price Impact. Instituting quick
were diligently planned and efficiently executed. These “merchandising hits” in our new Price Impact banner has
THE ACQUISITION OF PATHMARK; STRATEGIC
achievements represent our continuous progression toward already shown promising results with early returns. Designs are
sustainable profitability. already in place for a store refresh concept for select Pathmark
MARKET DIVESTITURES FOR REALIGNMENT
locations that will cost-effectively modernize the stores while
OF THE BUSINESS IN THE NORTHEAST CORE;
Thanks to the hard work and dedication of our associates and enhancing both our price image and the Fresh experience.
management, we successfully completed the close of the In early February, we premiered our first Pathmark refresh in
CONSISTENT PROGRESS ON FUNDAMENTAL
Pathmark transaction. The integration is progressing smoothly Jersey City, New Jersey with much success. The 2008 programs
RETAIL KEY PERFORMANCE INDICATORS;
with each milestone set thus far achieved, without any major and updates planned for this customer base will leverage the
obstacles. To ensure a seamless business transition, numerous SUCCESSFUL RENOVATIONS IN OUR FRESH,
format’s growth potential.
meetings were immediately held to bring together all major
DISCOUNT, AND GOURMET STORES; AGGRESSIVE
Pathmark and A&P teams including Pathmark store managers. The Food Basics stores which represent our Discount format are
PRIVATE LABEL PENETRATION GROWTH RATE;
The collective energy garnered from this coming together has also experiencing very strong, year-over-year sales growth as
quickly made us Better Together and further fueled the drive to evidenced over the last four consecutive quarters. This top line
THE STRONGEST COMPARABLE STORE SALES
build our business. Our teams are now more than ever deeply growth has greatly enhanced bottom line improvement.
INCREASES FOR ONE YEAR, IN OVER 8 YEARS
focused on attaining the projected synergies anticipated. The Plans are currently being executed to expand this base of
intense preparation and concentration on targets, provides stores in 2008.
support to our belief that the $150 million of synergies is well
within our grasp. Early assessments of potential synergies are Solid growth is also clearly evident in the Manhattan market,
already presenting results consistent with projections. where The Food Emporium has exceeded expectations. The
As we continue to dynamically innovate
latest two renovations have been met with positive results. The
product offerings across all formats, our
I am especially pleased to announce the successful completion “food2go Fresh” product line recently launched is providing
Fresh programs began introducing Starbucks
and signing of our logistics contract with C&S Wholesale customers a large variety of convenient and tasty prepared
cafes in select locations. The stores offer a full
Grocers in March 2008. This innovative ten-year agreement gourmet selections. This program has had overwhelming
beverage menu, as well as Starbucks cookies,
combines our previously separate A&P and Pathmark success in meeting our customers’ needs for delicious, fresh
pastries and other baked selections. Four
supply contracts. It is especially significant in that it fully cuisines that fit effortlessly into their busy lifestyle. This format
in-store cafes were launched this year and are
aligns our distribution operations, procurement practices continues to meet customers’ needs for premium foods with
doing very well, with more planned for 2008.
and warehousing facility goals. It is also expected to create expansion plans for the next two years.
This has been a year of substantial progress
increased efficiencies across our distribution network
which has positioned the Company well to
improving service levels to all stores, and enabling both the
INNOVATIONS continue capturing leadership share as the
Company and C&S to achieve substantial cost savings.
The success of these formats is primarily due to our new market is primed and ready. We remain intent
mindset which fosters the development of innovations on our targeted plans and strategic mission,
The key aspects of this agreement are: internally, as well as exploring new opportunities through with increased momentum from Pathmark’s
• An innovative new business model strategic partnerships and acquisitions. This is clearly evident integration. Reflecting on this busy year, I am
• A dedicated network of distribution centers in our substantially enhanced private label program. In 2007, especially proud to see many long planned
• Coordination and collaboration of resources we commenced the complete revamp of the America’s Choice programs and goals come to fruition. And
• Reduction of on-hand inventory brand with a new logo and packaging. Further we began I look forward to reporting back to you the
• Improved in-stock levels introducing America’s Choice products in Pathmark with success of achieving our projected synergy
• Best-in-class service levels with improved speed-to- resounding positive feedback. Additionally plans are underway savings in 2008.
market delivery to transform Pathmark’s “Savings Plus” private label brand and
• Cost reductions which will result in savings for customers leverage the new product line across most of our formats. This I want to take this opportunity to personally
has fueled excitement for aggressive development of dynamic thank the executive management team for
FORMAT DRIVEN OPERATIONS products for launch next year. their effective leadership, our associates and
As the only retailer in the Northeast to execute across four management for the passion they bring to
In October, we acquired Best Cellars, a New York City-based
differentiated formats, we are focused on effectively serving their jobs and their tireless efforts and to
retailer renowned for uniquely merchandising “Great Wines
all of our customers. With clear market segmentation across Christian Haub, our Executive Chairman and
for Everyday” by flavor profile rather than by origin. Best
various regions in the Northeast operating under multiple the Board of Directors whose support has
Cellars pioneered a simple concept of offering great wines for
banners, as well as a target consumer base, we continue to enabled us to reach the next level.
everyday enjoyment with food, sold at reasonable prices in
invest capital in our store base, which now includes Pathmark.
an engaging and customer-friendly environment. Best Cellars’
marketing strategy enables customers to shop for beer, wine
Due to our new effective price strategy in Fresh, we are better Sincerely,
and spirits intuitively, based on taste. Acquiring Best Cellars
positioned against our competition and are winning new
played an important role in marrying our Fresh food programs
customers week after week. The Fresh renovations continue
with beer, wine & spirits creating one more innovative reason
to play an integral role in our strategic transformation. The
to choose A&P. Early in the coming year we will open the first
positive financial results of increased sales and margins clearly
stand alone A&P Best Cellars store.
illustrate that we are on target with our mindset to deliver a Eric Claus
superior Fresh store offering. In September, we premiered our President and Chief Executive Officer
“walking street” style environment proto-type in Park Ridge,
New Jersey to overwhelming customer response.
3 4

4. WITH THIS TRANSACTION WE HAVE NOW ACHIEVED THE NUMBER ONE
POSITION IN THE NORTHEAST REGION BASED ON MARKET SHARE.
their guidance, advice and counsel
competitiveness – we expect to
and successful concepts that
2007 has been a momentous
during this very challenging but
realize integration synergies of
have generated positive sales and
year for A&P, not only did we
at the same time exciting period
at least $150 million within the
earnings; outsourcing distribution
deliver improved results from our
in A&P’s history. My most sincere
next 18 to 24 months – creating
and gaining significant cost
operations but also completed
CHAIRMAN’S REPORT TO STOCKHOLDERS
thanks also goes out to our
substantial value for stockholders,
advantages and supply chain
the strategic transformation in
valued associates, who with their
and providing opportunities for
efficiencies; centralizing
creating a focused Northeast
diligent efforts have supported
growth and development for our
administration and reducing
concentration of stores,
their Company through all these
associates.
overhead costs dramatically.
envisioned and planned over
Dear Fellow Stockholders: changes. Finally, I want to thank
In 2008, our focus will be
The completion of the
three years ago. Back in 2004
our outstanding management
on the successful integration
Pathmark transaction has certainly
the Company realized it had to
I am pleased to report to you that we have team for their commitment, hard
of Pathmark while at the same
been the highlight of a very busy
transform itself in order to grow
work and enthusiasm. Under
time weathering the challenges
year. I am very pleased with the
stockholder value and sustain
accomplished many of the goals we had the leadership of our CEO, Eric
of a changing economic
overall outcome of the process.
a successful business for the
Claus, they have accomplished
environment. We have moved
This merger could not have come
long term. We embarked on
set for ourselves and the completion of the
a remarkable turn-around and
quickly and effectively to integrate
at a better time for the Company.
a path to achieve the leading
Pathmark acquisition has certainly been the transformation and although a lot
the businesses based on a
The addition of Pathmark’s skilled
position in our core Northeast
of work still remains to be done
comprehensive plan developed
talent, expansive store portfolio,
markets by driving consolidation,
capstone of our strategic transformation.
this team deserves a tremendous
by our integration team. To date
formidable brand strength and
consequently divesting our non-
amount of credit and praise for
the Company is on track with
fervent consumer reputation
core markets, while at the same
their achievements.
significant benefits already being
completes our consumer-centric,
time implementing a format
I’m looking forward to
realized from the acquisition.
go-to-market strategy. The
driven strategy and eliminating
continued progress in 2008 and
We are well positioned to deal
acquisition is significant not
redundant overhead by creating
beyond as we integrate Pathmark,
with the effects of a slower
only in the fact that it creates a
a centralized organization
implement our format driven
economy. I am confident that our
highly competitive Company
focused on driving top line sales
strategy and look for additional
management team is fully capable
which positions us to achieve
growth and achieving improved
ways to grow our business and
of delivering on the full potential
sustainable profitability but
profitability.
create value for our stockholders.
of the Pathmark acquisition and
also in the immeasurable value
The results in our retail
the ongoing roll-out of our format
derived from bringing together
operations have steadily improved
Sincerely,
strategy.
two iconic American grocery
during the last three years. This
The last several years have
chains. The integration provides
past year has seen the strongest
seen a tremendous amount
us the lead position in the largest
top line sales trend in many years.
of change at A&P. We have
consumer market – the New
Our overall improved performance
truly transformed our great
York metropolitan area, while
is directly attributable to the
Company and realized significant
also significantly increasing the
skills of our proven leadership
Christian Haub
stockholder value during this time.
combined Company’s share
team and the new mindset in our
Throughout this process our Board Executive Chairman
in the greater Philadelphia
organization which has driven the
of Directors worked tirelessly to
market. In addition, the merger
operating progress in our business
support our transformation and
will transform A&P’s financial
by implementing a multiple
I couldn’t be more thankful for
performance, efficiency and
format strategy built on proven
5 6

5. Table of Contents
9 A Year In Review
15 Format Driven Strategies
17 Vision & Innovations: A New Mindset for the New A&P
19 Key Performance Highlights
21 Community Relations
23 Sustainability
24 Executive Management Team
25 Board of Directors
Annual Report for year ended February 23, 2008
Stockholder Information
7 8

6. SOMETIMES CHASING THE PRIZE CAN SEEM
FRUITLESS.
9 14

7. 25 APRIL 2007
A&P announces
NET
INCOME 19 JULY 2007
OF $27 Company Annual 7 SEPTEMBER 2007
MILLION Meeting
13 MARCH 2007 SuperFresh store opens in
for fiscal year ended
A&P sells 6,350,000 shares Philadelphia
30 AUGUST 2007
February 24, 2007
of Metro to purchase
A&P signs an agreement
Pathmark 30 MAY 2007
27 FEBRUARY 2007 to operate Starbucks
Christian Haub presented stores in select A&P
A&P announces
with the Children’s Health locations
negotiations to acquire
Fund’s Corporate Award
Pathmark
21 MAY 2007
5 MARCH 2007 PGA Beef Program
Launches 1 AUGUST 2007
A&P announces
agreement to Four Company Executives
acquire Pathmark named “Top Women in
for $1.3 billion Grocery” by Progressive
Grocer Magazine
7 JULY 2007
A&P announces sale
of Midwest stores
10 11

8. 8 JANUARY 2008
27 SEPTEMBER 2007
A&P announces
Park Ridge, NJ A&P
third quarter
opens - first dramatically 8 MAY 2008
3.1% 26 JANUARY 2008
redesigned Fresh store 17 OCTOBER 2007
INCREASE
A&P announces
SuperFresh celebrates 25th
A&P announces fourth quarter
3.0%
Anniversary with a $25,000
second quarter in comparable store sales
3.2% shopping spree give-away
INCREASE
27 NOVEMBER 2007
INCREASE in comparable store sales
The Federal Trade Commission
in comparable store sales accepts consent agreement for
operating results A&P to aquire Pathmark
16 FEBRUARY 2008
17 JANUARY 2008 Pathmark Gospel Choir
15 NOVEMBER 2007 Executive Management Team and Competition
A&P acquires Best Cellars Board of Directors ring the closing
3 DECEMBER 2007
15 SEPTEMER 2007 bell at the NYSE
Pathmark acquisition
A&P announces sale
10 MARCH 2008
complete
of 21 New Orleans-area
Sav-A-Center stores
A&P and C&S Wholesale
Grocers sign an
Industry-Leading Agreement
W I T H G O O D I N F O R M AT I O N A N D T H E R I G H T P E R S P E C T I V E , T H E P R I Z E I S A L O T C L O S E R T H A N Y O U T H I N K .
12 13

9. FORMAT DRIVEN STRATEGIES
DISCOUNT FRESH PRICE IMPACT GOURMET
Food Basics A&P, Waldbaum’s, SuperFresh Pathmark The Food Emporium
“Lower Prices Everyday” “Price Impact” “The World’s Finest Gourmet”
“Best in Fresh, Simplified Red Tag Savings”
The Food Basics banner’s Discount approach appeals to The Pathmark banner is becoming a destination price The Food Emporium’s new European-style “shops within a
A unique destination of high quality fresh products with an extensive,
a growing market with its value priced items for those leader, where the customer basket is impressionably store” feature a dazzling array of decadent gourmet delicacies
value driven pricing program is the winning combination for our
that must save as well as those that like to save without less expensive than conventional supermarkets. It ranging from the finest imported cheeses to the most exclusive
Fresh format banners. A&P, SuperFresh and Waldbaum’s stores feature
compromising on quality and freshness. This bright and offers a full selection of the products customers need handcrafted chocolates. The best food products from around the
merchandising excitement with enticing signature products highlighting
modern urban layout features an assortment of local- most at low prices, with national brand products and world are available in this trendy store, all in a high-style setting.
the best in fresh products including produce, meat, seafood, deli and
ethnic foods with the best service, quality and price. Own Brand alternatives. With designated deal zones But it isn’t all decadence. The Food Emporium doubles as the
delicious baked goods, with many products made on the premises. This
and treasure hunt items throughout the store, it neighborhood grocer in Manhattan, offering a wide selection of
Fresh format not only offers the full traditional grocery offerings but also
delivers value and an impactful shopping experience. grocery products.
a host of fresh, prepared, natural/organic and specialty food products all
under one roof.
15 16

10. INNOVATION: INNOVATION:
Best Cellars Decadent 27 Layer
Croissant with real
Bringing food & wine Irish Butter
together…with a
unique flavor profile
PRIVATE LABEL:
VISION+INNOVATIONS In 2004 The Great Atlantic and Pacific Tea Company developed a
Seafood Joe - The freshest seafood straight
mission to strategically transform the business. The goal was to
from the sea
not only return the Company to profitability but also to become
a market leader in all geographic locations we serve. Success of
this goal depended on innovating the way we meet customers’
INNOVATION:
needs and deviating from old ways of thinking.
A NEW
Fresh Vine Ripened
Tomatoes that taste like you
just picked them yourself
MINDSET
FOR THE
NEW A&P INNOVATION:
Pharmacy
Live Better!
In order to be effective in this mission the Company needed to
move quickly and with directed purpose in every aspect of the Wellness Program
business. The new mindset was integral to the achievement of
our goal and was based on strategically transforming our: Helping people
make better
Innovations , Promotion, & Private Label choices
PROMOTION:
See Red & Save Promotion
PROMOTION:
INNOVATION:
Weekly Circulars
Park Ridge Fresh Store
Winning customers with a
Dramatically redesinged
variety of ways to save
store format like you’ve
never seen before
PRIVATE LABEL:
National Brand quality
for less
17 18

11. C O M PA N Y O V E R V I E W
KEY PERFORMANCE
HIGHLIGHTS
2. GROWING REVENUE AND PROFITABILITY THROUGH FOUR
COMPLEMENTARY TARGETED FORMATS; STRONG OPERATING
MOMENTUM FROM SUCCESSFUL NEW FORMAT ROLL-OUT AND
NEW MERCHANDISING INITIATIVES
3. EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD
#
BOTH OPERATIONALLY AND STRATEGICALLY
1 4. EXPECTED ANNUAL SYNERGIES OF $150 MILLION
30
1. THE NEW A&PMARKET LEADINGPOSITION IN THE COUNTRY’S LARGEST
IS THE FOOD RETAILER IN THE NORTHEAST
> million in
WITH THE #1 SHARE miscellaneous
CONSUMER MARKET.
80 > million
#1 Market Share 4 Powerful Formats reduction in
in the #1 market in the country in one concentrated market
administration
costs
Exceptional real-estate portfolio
Best in Fresh coupled with in the largest and most densely
40
Best in Center Store populated market in the country
> million reduction in
cost of goods sold
447 STORES : $9.4* BILLION IN SALES
*on a Pro-forma basis
19

12. DONATIONS FUNDRAISERS
In 2007, the Company Finally, the STORES RAISED $195,000
In-store fundraisers are another critical element of the
contributed to local events FOR ST. JUDE’S DURING THE MONTH OF
Company’s commitment to its primary partnership.
In 2007, THE COMPANY RAISED NEARLY
such as the NJ March of Dimes OCTOBER through the St. Jude’s Pumpkin register
$750,000 FOR THE MDA through its many
RIDE and Harvest Ball, a “Share fundraiser. Two of the top yielding District Managers
Our Strength” fundraiser fundraising activities (The Shamrock Campaign, Aisles and Store Managers flew to St. Jude’s Hospital in
in Baltimore dedicated to of Smiles Program, The Golf Outing). Representatives Memphis to receive plaques for their outstanding
ending childhood hunger. of the Company also appeared on the MDA Telethon efforts.
The Company also provided in Las Vegas, New York and Baltimore. Alex’s Lemonade Stand is another cause near
THE COMPANY RAISED MORE THAN
donations to Variety Children’s and dear to the hearts of associates, as Alex hosted
$550,000 FOR THE CHILDREN’S HEALTH
Charity Telethon to support one of her first stands outside the SuperFresh Store
FUND (CHF) through a cash register fundraiser
pediatric care in local hospitals in Wynnewood, PA. IN 2007, ALL BANNERS
such as the Oncology Suite PARTICIPATED IN ALEX’S LEMONADE
for donations to the mobile health units, participation
C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y at Memorial Sloan Kettering STAND FUNDRAISING EFFORT AND
in the 20th Anniversary Gala and support of the
COMMUNITY
Cancer Center, Cody House COLLECTIVELY RAISED $179,500 FOR
Hampton Home & Garden Show CHF Sunflower sale.
and others, as well as Youth THIS CHARITY IN ONE WEEKEND.
Services such as The Variety
RELATIONS Boys & Girls Club of Queens
and Felix Millan Little League.
In addition, the Company
also operates the Waldbaum’s
Foundation, established
in 1999 is an initiative
dedicated to the fight
against breast cancer.
THE WALDBAUM’S
In 2007, the FOUNDATION RAISED
Company MORE THAN $375,000
FROM ITS STORES
raised over LOCATED IN QUEENS,
BROOKLYN,
$2.5 million STATEN ISLAND, AND
LONG ISLAND.
for charitable
organizations. PATHMARK
The newest addition to the A&P Family of Supermarkets, the Pathmark banner, has been extremely active in the community supporting charities
such as the Alzheimer’s Memory Walk, The American Cancer Society’s Making Strides Walk, Make-A-Wish Foundation, Children’s Miracle Network,
and The Juvenile Diabetes Research Fund to name just a few.
Throughout its rich and storied history, The Great Atlantic were designated based on their ability to promote the
SPONSORSHIPS
& Pacific Tea Company has always been a responsible health, education and welfare of women and children.
THESE ARE THE MUSCULAR DYSTROPHY The Company sponsors a number of activities that benefit our primary charities.
corporate citizen enthusiastically giving back to the
ASSOCIATION (MDA), THE CHILDREN’S For example each year A&P partners with Acosta to bring food, fun and a festive
communities it serves. The Company’s extensive
atmosphere to the MDA Summer Camp in Spring Valley, New York. Management
HEALTH FUND AND THE ST. JUDE’S
Corporate Social Responsibility program includes
and associates work together serving food and assisting with the day’s activities.
CHILDREN’S RESEARCH HOSPITAL.
fundraising efforts, donations and sponsorships as well
Another program is THE WALDBAUM’S LONG ISLAND JUNIOR SOCCER
as a strong commitment to sustainability. For many Through these collective efforts the Company raised
CHALLENGE WHICH THE COMPANY HAS SUPPORTED FOR 12
years, associates have participated in and contributed to more than $2.5 million. In addition to these charities, the YEARS AND BENEFITS OVER 22,000 CHILDREN from Nassau and
a variety of organizations. To maximize the Company’s Company’s supermarket banners support a number of Suffolk counties.
focus and resources, primary charitable partnerships locally based organizations.
ELIZABETH HAUB FOUNDATION, ST. JUDE’S, SECOND HARVEST FOODBANK, MDA,
OPERATION SHOEBOX, CHILDRENS HEALTH FUND, ALEX’S LEMONADE STAND
21 22

13. S U S TA I N A B I L I T Y A C R O S S T H E C O M P A N Y 2007 A&P ANNUAL REPORT | EXECUTIVE MANAGEMENT TEAM
T H E E L I Z A B E T H H A U B F O U N D AT I O N
The Great Atlantic & Pacific Tea Company understands that being an
upstanding corporate citizen and giving back to the community means
more than just partnering with other organizations in support of important
philanthropic causes. For the Company it also means leading the change
for the well-being of our most valuable asset – our environment. A&P is
committed to preserving the environment, reducing litter and lessening the
flow of plastics into the waste stream.
Critical to this effort is our re-usable shopping bag program in support
of the Elizabeth Haub Foundation’s conservation efforts. The Foundation,
established more than 30 years ago is an international, non-profit organization
that supports legislation addressing environmental concerns such as the
World Charter for Nature of the United Nations. SINCE 2006 THE
PROGRAM HAS BEEN OFFERING CUSTOMERS
RE-USABLE, ENVIRONMENTALLY FRIENDLY,
DESIGNER QUALITY SHOPPING TOTES AT THE
LOW COST OF .99 CENTS. A portion of the sales from these stylish
totes is donated to the Foundation to help curb the use of disposable waste
plastics and conserve paper resources.
In addition to supporting and helping to curb the use of disposable waste
plastics and consumption of paper resources, the Company’s tote program
provides customers with the ability to support plastic reductions through
incentives. Shoppers that use a Haub tote or re-use a paper bag get .02 cents off
sustain ability FROM INCEPTION THROUGH
THE END OF 2007, PROCEEDS
FROM THE SALE OF THE
ELIZABETH HAUB BAGS HAVE
RESULTED IN THE DONATION
OF NEARLY $250,000 TO THE
FOUNDATION.
their shopping order and .01 cent off each re-used plastic bag. In addition, all of replacement and new store locations have white thermoplastic polyolefin
the Company’s stores contain recycling bins to allow shoppers to return plastic roofing. This material absorbs less heat thereby lessening the need for
grocery bags, dry-cleaning bags, and shrink wrap. increased air conditioner usage during the summer. Over the previous
Our commitment to reducing the Company’s carbon imprint is not five years we have significantly focused on higher efficiency heating and
limited only to our re-usable bag program. The Company has an internal cooling systems replacing existing systems in most of our remodeled store
committee of cross-functional leaders who consistently seek opportunities locations.
HANS HEER ERIC CLAUS JENNIFER MACLEOD ALLAN RICHARDS
IN ADDITION, A&P HAS CONCENTRATED ON back row,
to find environmentally-friendly products and practices. Committee
SENIOR VICE PRESIDENT PRESIDENT & SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT
left to right
LEADING THE CHANGE BY BUILDING THREE STORE
members have been instrumental in developing numerous eco-conscious & THE FOOD EMPORIUM CHIEF EXECUTIVE MARKETING & HUMAN RESOURCES,
LOCATIONS IN NEW JERSEY WHICH HAVE 300KW GENERAL MANAGER OFFICER COMMUNICATIONS L A B O R R E L AT I O N S ,
programs including lowering lights and adjusting temperatures to utilize
L EGAL SERV ICES &
SOLAR POWER SYSTEMS. These stores use solar energy to
less power during peak times. In addition, the stores have developed
SECRETARY
comprehensive practices to conserve our natural resources by enacting provide approximately one third of their electrical power which has
efficiency controls on energy and water usage. resulted in significant electrical reductions on the local power grids. The
BRENDA GALGANO REBECCA PHILBERT PAUL WISEMAN
The program also seeks further opportunities to improve the resource Company also has two co-generation stores in New York. These locations front row,
efficiency in our stores. TO THAT END, THE MAJORITY OF SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT
feature a rooftop micro-turbine generating system that combines heat and left to right
CHIEF FINANCIAL MERCHANDISING & ST O RE O P E RAT I ONS
OUR STORES HAVE HIGH EFFICIENCY FLUORESCENT power through a micro-turbine generating system which provides energy
OFFICER SUP P LY AN D LO GI ST I CS
LIGHTING AND A CENTRALIZED SYSTEM FOR savings and reduces demand on the local grid.
CONTROL ENERGY MANAGEMENT. Further, the refrigerated A&P continues to explore new ways to bring sustainable practices
to every aspect of our business. IN 2008 THE COMPANY
fixtures throughout our stores are monitored to avoid overstocking which
WILL INTRODUCE ADDITIONAL INNOVATIONS IN
blocks proper circulation of air and reduces energy efficiency.
ENVIRONMENTALLY-FRIENDLY MERCHANDISE
When store locations are updated, the Company reviews
AND OPERATIONS PRACTICES.
environmentally friendly construction options. As part of this update, all
THE DRAMATIC RESULTS FROM THIS PROGRAM’S PROCESS OF LOWERING STORE LIGHTING LEVELS ALONE
HAS SIGNIFICANTLY LESSENED OUR IMPRINT EQUIVALENT TO THE REMOVAL OF 1,058 CARS FROM THE ROAD.
23 24

14. 2007 A&P ANNUAL REPORT | BOARD OF DIRECTORS
2 0 0 7 A & P A N N U A L R E P O R T | S T O C K H O L D E R I N F O R M AT I O N
AMERICAN STOCK TRANSFER AND TRUST COMPANY
59 Maiden Lane
New York, NY 10038
Telephone 1-800-937-5449
www.amstock.com
STOCK LISTING:
New York Stock Exchange
Ticker Symbol: GAP
INDEPENDENT AUDITORS:
PricewaterhouseCoopers LLP
400 Campus Drive
P.O. Box 988
Florham Park, NJ 07932
EXECUTIVE ADDRESS OFFICE:
Two Paragon Drive
Montvale, NJ 07645
SAFE HARBOR STATEMENT:
This Annual Report contains forward-looking statements about the future performance of The Company, which are based on
management’s assumptions and beliefs in light of the information currently available to it.
ANNUAL STOCKHOLDER MEETING:
Date: Thursday July 17, 2008
Time: 9:00am (EDT)
Location: The Woodcliff Lake Hilton
200 Tice Boulevard
Woodcliff Lake, NJ 07677
GREGORY MAYS DAN MAUREEN JOHN BARLINE EDWARD LEWIS
back row standing,
INDEPENDENT MEMBER OF THE INDEPENDENT
KOURKOUMELIS TART-BEZER
left to right
MEMBER OF THE BOARD SINCE MEMBER OF THE
INDEPENDENT INDEPENDENT
BOARD SINCE JULY 9, 1996. BOARD SINCE
MEMBER OF THE MEMBER OF THE
DECEMBER 3, MAY 16, 2000.
BOARD SINCE BOARD SINCE MAY
2007. MARCH 21, 2000. 15, 2001. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to
uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited
to: statements about the expected future business and financial performance of The Company resulting from and following the
JENS-JÜERGEN BOBBIE GAUNT CHRISTIAN ANDREAS
front row seated,
merger; competitive practices and pricing in the food industry generally and particularly in The Company’s principal markets;
INDEPENDENT
BOECKEL HAUB GULDIN
left to right
The Company’s relationships with their employees and the terms of future collective bargaining agreements; the costs and other
MEMBER OF THE
MEMBER OF THE MEMBER OF THE MEMBER OF THE
BOARD SINCE
BOARD SINCE BOARD SINCE BOARD SINCE effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry;
MAY 15, 2001.
APRIL 29, 2004. DECEMBER 3, MAY 1, 2007. changes in the financial markets which may affect The Company’s cost of capital and the ability of The Company to access capital;
1991. CURRENT
supply or quality control problems with The Company’s vendors; and changes in economic conditions which affect the buying
EXECUTIVE
CHAIRMAN. patterns of The Company’s customers.
25

15. Table of Contents
Executive Chairman Letter to Stockholders................................................. 3
President and Chief Executive Officer Letter to Stockholders ..................... 5
Management’s Discussion and Analysis...................................................... 8
Consolidated Statements of Operations ...................................................... 46
Consolidated Statements of Stockholders’ Equity
and Comprehensive (Loss) Income ..................................................... 47
Consolidated Balance Sheets...................................................................... 49
Consolidated Statements of Cash Flows ..................................................... 50
Notes to Consolidated Financial Statements ............................................... 51
Management’s Annual Report on Internal Control over Financial Reporting 117
Report of Independent Registered Public Accounting Firm ......................... 118
Five Year Summary of Selected Financial Data .......................................... 120
Executive Officers........................................................................................ 122
Board of Directors........................................................................................ 122
Stockholder Information............................................................................... 123
Company Profile
The Great Atlantic & Pacific Tea Company, Inc. (“We,” “Our,” “Us,” “A&P,” or “our Company”),
based in Montvale, New Jersey, operates conventional supermarkets, combination food and drug
stores, and limited assortment food stores in 8 U.S. states and the District of Columbia under the
A&P£, Waldbaum’s¥, Pathmark£, Best Cellars£, The Food Emporium£, Super Foodmart, Super
Fresh£, and Food Basics£ trade names.
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16. EXECUTIVE CHAIRMAN LETTER TO STOCKHOLDERS
Dear Fellow Stockholders:
2007 has been a momentous year for A&P, not only did we deliver improved results from our
operations but also completed the strategic transformation in creating a focused Northeast
concentration of stores envisioned and planned over three years ago. Back in 2004 the Company
realized it had to transform itself in order to grow stockholder value and sustain a successful
business for the long term. We embarked on a path to achieve the leading position in our core
Northeast markets by driving consolidation, consequently divesting our non-core markets, while at
the same time implementing a format driven strategy and eliminating redundant overhead by
creating a centralized organization focused on driving top line sales growth and achieving
improved profitability.
I am pleased to report to you that we have accomplished many of the goals we had set for
ourselves and the completion of the Pathmark acquisition has certainly been the capstone of our
strategic transformation. With this transaction we have now achieved the number one position in
the Northeast region based on market share. The results in our retail operations have steadily
improved during the last three years. This past year has seen the strongest top line sales trend in
many years. Our overall improved performance is directly attributable to the skills of our proven
leadership team and the new mindset in our organization which has driven the operating progress
in our business by implementing a multiple format strategy built on proven and successful
concepts that have generated positive sales and earnings; outsourcing distribution and gaining
significant cost advantages and supply chain efficiencies; centralizing administration and reducing
overhead costs dramatically.
The completion of the Pathmark transaction has certainly been the highlight of a very busy year. I
am very pleased with the overall outcome of the process. This merger could not have come at a
better time for the Company. The addition of Pathmark’s skilled talent, expansive store portfolio,
formidable brand strength and fervent consumer reputation completes our consumer-centric, go-
to-market strategy. The acquisition is significant not only in the fact that it creates a highly
competitive Company which positions us to achieve sustainable profitability but also in the
immeasurable value derived from bringing together two iconic American grocery chains. The
integration provides us the lead position in the largest consumer market – the New York
metropolitan area, while also significantly increasing the combined Company’s share in the
greater Philadelphia market. In addition, the merger will transform A&P's financial performance,
efficiency and competitiveness – we expect to realize integration synergies of at least $150 million
within the next 18 to 24 months – creating substantial value for stockholders, and providing
opportunities for growth and development for our associates.
In 2008, our focus will be on the successful integration of Pathmark while at the same time
weathering the challenges of a changing economic environment. We have moved quickly and
effectively to integrate the businesses based on a comprehensive plan developed by our
integration team. To date the Company is on track with significant benefits already being realized
from the acquisition. We are well positioned to deal with the effects of a slower economy. I am
confident that our management team is fully capable of delivering on the full potential of the
Pathmark acquisition and the on-going roll-out of our format strategy.
The last several years have seen a tremendous amount of change at A&P. We have truly
transformed our great Company and realized significant stockholder value during this time.
Throughout this process our board of directors worked tirelessly to support our transformation and
3

17. I couldn’t be more thankful for their guidance, advice and counsel during this very challenging but
at the same time exciting period in A&P’s history. My most sincere thanks also goes out to our
valued associates, who with their diligent efforts have supported their Company through all these
changes. Finally, I want to thank our outstanding management team for their commitment, hard
work and enthusiasm. Under the leadership of our CEO, Eric Claus, they have accomplished a
remarkable turn-around and transformation and although a lot of work still remains to be done this
team deserves a tremendous amount of credit and praise for their achievements.
I’m looking forward to continued progress in 2008 and beyond as we integrate Pathmark,
implement our format driven strategy and look for additional ways to grow our business and create
value for our stockholders.
Sincerely,
Christian Haub,
Executive Chairman
4