Farmer Jack

Farmer Jack was an American supermarket chain centered on metropolitan Detroit, Michigan. It developed from the grocery operations of the Borman family and became one of southeastern Michigan's most visible food retailers before its closure in 2007. The banner was introduced in 1966 as part of Borman's expansion into suburban shopping centers that combined food stores with related services such as gasoline, car washing, gardening supplies and discount retail. Its stores were generally located in suburban neighborhoods and commonly anchored strip malls. The chain's roots went back to 1924, when Jewish-Russian immigrants Tom Borman and Sam Burlak opened Tom's Quality Meats in Detroit. Tom Borman and his brother Abraham “Al” Borman subsequently developed separate grocery businesses before their operations were combined under Food Fair and later Borman's Inc. The company expanded through acquisitions and new store development, building a substantial southeastern Michigan presence. Farmer Jack became the principal supermarket identity for that suburban expansion, while the broader Borman organization also operated other retail concepts and acquired businesses such as the Arnold Drug pharmacy chain. At its peak, Farmer Jack operated more than 100 stores, primarily in metropolitan Detroit. Its full-service supermarkets typically included grocery, produce, meat, seafood, bakery, delicatessen, floral and pharmacy departments; some locations also contained banks. The chain also experimented with markets outside its core territory. In 1987 Borman's acquired Safeway's 60-store division in Utah and nearby states and converted those stores to the Farmer Jack name. That expansion was brief, and the division was sold to several retailers by the end of 1988. The company also faced a lengthy Detroit-area labor strike in 1987, which weakened Borman's finances. A&P acquired 79 Farmer Jack stores from Borman's in 1989 for approximately $76 million. The transaction made A&P the leading grocery operator in southeastern Michigan by market share, and by 1994 A&P had converted its metropolitan Detroit stores to the Farmer Jack banner. The chain was highly successful during much of the 1990s and was described as A&P's most profitable division during that period. Its marketing became closely associated with the “It's Always Savings Time” jingle, short radio price announcements and the regional slogan “Made in Michigan, Sold at Farmer Jack.” Farmer Jack entered a prolonged decline after 2002. Its difficulties included unsuccessful expansion into Toledo, Flint, Saginaw and Lansing; insufficient investment in store remodeling; a delayed response to aggressive price competition from Kroger, Meijer, Costco and Super Kmart; the discontinuation of Northwest Airlines mileage rewards; and the centralization of local management, merchandising, accounting, advertising and marketing functions at A&P's headquarters. The chain attempted a major 2003 recovery program involving store closures, employee buyouts, deep cleaning, new uniforms, everyday-low-price positioning and the “We're Thinking Fresh” campaign. Although the program improved apparent price competitiveness, it did not resolve the chain's underlying store-condition and investment problems. A&P later converted selected stores to its Food Basics discount format and explored a sale of the chain. A proposed transaction with Spartan Stores did not close, while employee concessions helped A&P keep the stores operating for a limited period. Farmer Jack returned to profitability by April 2006, but A&P concluded that it lacked sufficient sales momentum in Michigan. A planned mixed discount-upscale store prototype was abandoned in 2006. In March 2007 A&P announced that it would sell or close the banner. Distribution facilities closed in May, and the remaining stores shut on July 7, 2007. A&P subsequently sold or marketed many former locations to Kroger, smaller chains and independent grocers. Remaining lease obligations from discontinued Farmer Jack operations later contributed to A&P's legal and financial problems, including its 2010 bankruptcy filing.

Farmer Jack emerged from the Borman family's Detroit grocery business. In 1924 Tom Borman and Sam Burlak opened Tom's Quality Meats at Twelfth Street and Forest Avenue. Tom Borman's brother Abraham “Al” Borman opened another market on Kercheval on Detroit's east side in 1927. The brothers later pursued separate retail organizations, with Tom developing Lucky Stores and Al developing Food Fair markets. Their operations were combined in 1955 under Food Fair and operated through Borman Food Stores Inc.; the company was renamed Borman's Inc. in 1959. Borman's used acquisitions and public-market financing to expand. It purchased State Super Markets of Ferndale and acquired nine Lipson-Gourwitz markets, creating a larger Detroit-area platform. It also acquired the 13-store Arnold Drug chain in 1965, although that pharmacy business was dissolved in 1981 after producing financial losses. In 1966 the company introduced Farmer Jack as the food-store component of suburban shopping-center developments that could also include gas stations, car washes, garden-supply stores and discount stores. The banner was designed for suburban neighborhoods and typically occupied strip-mall anchor locations. During the 1970s, Detroit was a highly competitive grocery market. Farmer Jack and other regional chains competed with operators including Chatham and Great Scott!, while national companies such as A&P pursued discount-oriented formats. Borman's continued building its southeastern Michigan presence and eventually made Farmer Jack its principal supermarket identity. In 1987 the company attempted to diversify geographically by purchasing Safeway's 60-store division in Utah and nearby portions of Idaho, Nevada, Oregon and Wyoming. Those stores were renamed Farmer Jack, but the expansion was short-lived and the division was sold to different retailers by the end of 1988. Borman's financial position was also weakened by a long 1987 strike involving Detroit-area clerks and cashiers. The company bought out approximately 800 workers at a reported cost of $12.9 million, and the strike helped begin a period of losses. In 1989 A&P bought 79 Farmer Jack stores from Borman's for approximately $76 million. The acquisition made A&P the largest grocery operator in southeastern Michigan by market share. A&P subsequently converted its metropolitan Detroit stores to the Farmer Jack banner, completing the process by 1994. During the 1990s the division performed strongly and was regarded as A&P's most profitable operating division. A&P also used the name in selected eastern markets, including Virginia and South Carolina, although those stores were separate from the Midwest operation and were closed or sold by 1999. The chain's competitive position deteriorated after 2001. Farmer Jack expanded beyond metropolitan Detroit into Toledo, Flint, Saginaw and Lansing, but those markets did not perform well. At the same time, its existing stores received less capital investment than competing Kroger locations. The chain was slow to respond to a price contest involving Meijer, Kroger, Costco and Super Kmart. Ending Northwest Airlines mileage rewards also alienated some higher-income customers. A&P further centralized local management, merchandising, accounting, advertising and marketing at its Montvale, New Jersey headquarters, reducing the local knowledge and autonomy that former executives considered important in the Detroit market. Farmer Jack began losing money in 2002 and announced closures and employee buyouts in 2003. A substantial recovery effort temporarily closed each store for cleaning and introduced new uniforms, everyday-low pricing and the “We're Thinking Fresh” campaign, including a fresh-or-free promise. The initiative improved the chain's price position, but observers continued to identify aging fixtures and inconsistent store conditions. In 2004 A&P converted ten stores to Food Basics to compete with discount chains. Most of those locations were subsequently closed, while one new Dearborn Heights store was returned to the Farmer Jack format. A&P put Farmer Jack up for sale in 2005. Employees accepted wage reductions in connection with a proposed Spartan Stores acquisition, but the deal collapsed. A&P later guaranteed continued operation through May 2007 and restored loyalty cards and “It's Savings Time” advertising after acknowledging that its expectation of a rapid sale had contributed to weak management. The division returned to profitability by April 2006, but A&P still considered its Michigan sales momentum inadequate. A proposed three-store mixed discount-upscale prototype was announced in August 2006 and abandoned by October. In March 2007 A&P announced that Farmer Jack would be sold or closed. Its distribution warehouses shut in May, and the remaining stores closed on July 7. A&P announced sales of former locations to Kroger, smaller chains and independent grocers. In a later regulatory filing, A&P reported receiving approximately $110 million for 41 former Farmer Jack sites, while additional stores and warehouses remained available. In 2010 A&P stopped paying rent on vacant former Farmer Jack properties, triggering lawsuits from landlords. The company later cited lease obligations associated with discontinued operations such as Farmer Jack as one factor in its bankruptcy filing. The brand remains a significant part of metropolitan Detroit grocery-retail history, particularly through its radio advertising, “It's Always Savings Time” jingle and “Made in Michigan, Sold at Farmer Jack” slogan.

• 2010

  Former-store lease disputes

  [1]Farmer Jacken.wikipedia.org

  A&P's termination of lease payments for vacant former stores led to lawsuits by property owners.

• 2007

  All remaining stores close

  [1]Farmer Jacken.wikipedia.org

  A&P closed the remaining Farmer Jack stores on July 7, ending the brand's retail operations.

• 2005

  Chain put up for sale

  [1]Farmer Jacken.wikipedia.org

  A&P sought a buyer for Farmer Jack, but the proposed Spartan Stores transaction did not close.

• 2003

  Freshness and pricing overhaul

  [1]Farmer Jacken.wikipedia.org

  Farmer Jack launched a broad store-cleaning, pricing and marketing recovery program.

• 2002

  Profitability begins to deteriorate

  [1]Farmer Jacken.wikipedia.org

  The chain began losing money amid expansion problems, underinvestment and intensified competition.

• 1994

  A&P conversions completed in metropolitan Detroit

  [1]Farmer Jacken.wikipedia.org

  A&P had converted all of its metropolitan Detroit stores to the Farmer Jack banner.

• 1989

  A&P acquires the Midwest chain

  [1]Farmer Jacken.wikipedia.org

  A&P purchased 79 Farmer Jack stores from Borman's.

• 1987

  Short-lived western expansion

  [1]Farmer Jacken.wikipedia.org

  Borman's acquired and renamed Safeway's 60-store division in Utah and nearby states.

• 1966

  Farmer Jack banner introduced

  [1]Farmer Jacken.wikipedia.org

  Borman's introduced Farmer Jack for food stores in suburban shopping-center developments.

• 1924

  Borman family grocery roots begin in Detroit

  [1]Farmer Jacken.wikipedia.org

  Tom Borman and Sam Burlak opened Tom's Quality Meats, establishing the grocery-business foundation from which Farmer Jack later developed.

Regional, full-service supermarket chain with a mass-market orientation, suburban neighborhood locations and a later emphasis on price competition and fresh food.

• Grocery retail · 1966

  Full-service supermarkets

  Farmer Jack stores were neighborhood-oriented supermarkets that combined conventional packaged groceries with extensive fresh-food and service departments. Typical locations included produce, meat, seafood, bakery, delicatessen, floral and pharmacy operations. Some stores also contained banks. The format generally anchored suburban strip malls and was intended to provide a broad weekly-shopping destination rather than a narrowly specialized food outlet.

• Fresh food

  Fresh food departments

  Fresh produce, meat, seafood, bakery and deli departments were central to the chain's full-service supermarket proposition. Freshness became an especially prominent part of the brand's attempted recovery in 2003, when the company promoted a “fresh or free” guarantee and used the “We're Thinking Fresh” campaign.

• Regional merchandising

  Michigan products

  The chain promoted Michigan brands and agricultural products through the regional slogan “Made in Michigan, Sold at Farmer Jack.” This positioning connected the retailer to its Detroit-area identity and distinguished its advertising from purely national supermarket messaging.

• 2005It's Savings Time revival

  Michigan

  After a proposed sale failed, A&P restored loyalty cards and revived the “It's Savings Time” marketing approach while attempting to stabilize the chain.

  Outcome. Farmer Jack was reported to have returned to profitability by April 2006, but A&P later abandoned a planned prototype-store strategy and closed the chain in 2007.

  Source
• 2003We're Thinking Fresh

  Metropolitan Detroit

  As part of a turnaround, stores were closed for approximately 37 hours for intensive cleaning. The chain introduced new uniforms, replaced loyalty-card and weekly-sale mechanics with everyday-low pricing, and promoted an “It's fresh or it's free” guarantee.

  Outcome. A newspaper price comparison found that Farmer Jack's basket became less expensive relative to competitors, but continuing facility and merchandising weaknesses limited the durability of the recovery.

  Source
• 1990It's Always Savings Time

  Metropolitan Detroit

  Farmer Jack used the “It's Always Savings Time” jingle and rapid radio price announcements to reinforce a value-oriented identity. The audio format became one of the chain's most recognizable elements in Detroit-area retail advertising and was revived in the mid-2000s.

  Outcome. The campaign became strongly associated with the brand, although the available material does not establish a specific sales result.

  Source
• 1990Made in Michigan, Sold at Farmer Jack

  Michigan

  This regional merchandising and advertising message promoted Michigan brands and agricultural products sold through the chain.

  Outcome. It reinforced Farmer Jack's local-market identity; no quantified campaign outcome is available.

  Source

• 2007

  Closure and disposition of the chainOther

  Background

  A&P could not find a buyer for the chain and determined that the remaining stores were not viable as an ongoing network.

  Action taken

  A&P closed distribution warehouses in May and shut all remaining Farmer Jack stores on July 7. Former sites were sold or offered to Kroger, smaller chains and independent grocers.

  Aftermath

  A&P later reported approximately $110 million in proceeds from 41 former Farmer Jack sites, while additional stores and warehouses remained for sale.

  Reported proceeds from former store sites. Approximately $110 million (2007 filing covering disposals after the closure)

  • Kroger — Kroger acquired 20 former Farmer Jack locations.

  Source

• 2006

  Mixed discount-upscale prototype abandonedStrategy

  Background

  A&P was testing ways to restore sales momentum while preserving a price-oriented position.

  Action taken

  A&P planned three prototype stores with warehouse-style shelving, a narrower assortment, higher produce stacking and lower prices.

  Aftermath

  The prototype plan was scrapped by October after A&P concluded that sales momentum in Michigan remained inadequate.

  Source

• 2005

  Attempted sale to Spartan StoresM&A

  Background

  A&P placed Farmer Jack on the market and sought to exit or restructure the Michigan business.

  Action taken

  Workers approved wage reductions tied to a proposed acquisition by Spartan Stores, whose leadership included former Farmer Jack executives.

  Aftermath

  The transaction fell through. Workers later accepted another package of concessions in return for A&P's commitment to keep stores open through May 2007.

  Source

• 2004

  Food Basics conversion experimentGeneration change

  Background

  A&P sought a lower-cost format to compete with discount chains such as Save-A-Lot.

  Action taken

  Ten Farmer Jack stores were converted to A&P's Food Basics format. Most were subsequently closed, while a Dearborn Heights location returned to the Farmer Jack banner.

  Aftermath

  The experiment did not produce a lasting local discount-format network.

  Source

• 2003

  Turnaround through cleaning, pricing and fresh-food messagingStrategy

  Background

  Farmer Jack was losing money and facing share losses to Kroger, Meijer and other aggressive competitors.

  Action taken

  The company temporarily closed stores for cleaning, introduced new uniforms, moved toward everyday-low pricing and launched the “We're Thinking Fresh” program.

  Aftermath

  Prices became more competitive, but aging store infrastructure and inconsistent conditions continued to undermine the chain.

  • Kroger — Kroger continued a major remodeling and replacement program in metropolitan Detroit.
  • Meijer — Meijer remained part of the regional price competition that Farmer Jack was attempting to answer.

  Source

• 1989

  A&P acquires Farmer Jack's core Midwest storesM&A

  Background

  Borman's financial position had been weakened by losses following the 1987 labor dispute and other pressures.

  Action taken

  A&P purchased 79 Farmer Jack stores for approximately $76 million and made the chain part of its southeastern Michigan operations.

  Aftermath

  A&P became the leading grocery operator in southeastern Michigan, and its local stores were later converted to the Farmer Jack banner.

  Acquisition price. $76 million (1989)

  Source

1. 1Farmer Jacken.wikipedia.org