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A&P to add Starbucks coffee shops to some stores

Thu Aug 30, 2007 9:36am EDT

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CHICAGO, Aug 30 (Reuters) - Great Atlantic & Pacific Tea Co Inc (GAP.N), the grocer known as A&P, said on Thursday it will soon add Starbucks Corp (SBUX.O) coffee shops to some stores.

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A&P will operate the Starbucks shops under a licensing deal. The first locations are set to open in New Jersey in November. The company said the agreement covers select A&P Fresh and Gourmet/Fine Foods stores in the Northeastern United States. It was not immediately available to comment on how many stores would add Starbucks locations.

Several other U.S. grocers, such as Safeway Inc (SWY.N), already have Starbucks locations in their stores.

A&P operates 337 stores under the A&P name and other banners including Waldbaum's and The Food Emporium.

(See here for "Shop Talk" -- Reuters' retail and consumer blog)

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