D’Agostino marketing its nine remaining stores

84-year-old family-owned chain squeezed by competition, high rent
June 07, 2016 10:31AM

D’Agostino store at 1233 Lexington Avenue on the Upper East Side

New York City grocery staple D’Agostino is looking to sell its remaining stores.

The company, which operated 13 stores a year ago and 26 at its peak, is struggling with stiff competition from brands such as Whole Foods, Trader Joe’s, FreshDirect and others, as well as rent increases at its locations.

It operates stores at 633 Columbus Avenue on the Upper West Side, 1233 Lexington Avenue on the Upper East Side, 578 Third Avenue in Murray Hill and other locations.

The 84-year-old, family-owned supermarket chain is marketing its nine store locations in Manhattan, drawing interest from firms like Food Emporium owner Key Food, the New York Post reported.

Industry experts say Key is a natural buyer for the stores.

“It would make tremendous sense since D’Agostino’s operating results have suffered tremendously and Food Emporium is a very strong brand that can be brought back,” Burt Flickinger, a supermarket consultant, told the Post.

D’Agostino’s CEO Robert James told the paper the company wasn’t in discussions about a possible sale. [NYP]Ariel Stulberg