Peck’s Markets being sold
New Operator Keeping All Peck’s Associates
FRED STABBERT | SULLIVAN COUNTY DEMOCRAT
Posted Friday, August 9, 2024 6:10 am
Callicoon – The four employee-owned Peck’s Markets in Sullivan County are in contract to be sold to PSK Supermarkets, also a family run, employee-owned business operating 14 stores throughout New York.
PSK has offered every Peck’s associate their job, with the same pay and benefits. The stores will remain as Peck’s Market, the name will not change.
Peck’s Markets, in business since the 1970s, was originally started by Arthur Peck in Narrowsburg and became employee-owned in 1983. The company expanded over the years, adding Jeffersonville and Eldred. Today, Peck’s CEO Lee Reimer and his team of over 200 associates manage and run the 4 stores.
Reimer stated that “In 2023, we took a vote of the associates to see if they were interested in selling the company, which they were.
“We wanted to make sure that we would only consider a company to sell the business to if they were going to provide a good working environment for our people with the possibility of growth for the teams,” Reimer said.
“We did not want to sell out to a big chain because we were concerned that they would not care about our people or the communities the way we do,” Reimer added.
In the Winter of 2023, Peck’s approached Noah Katz, CEO of PSK Supermarkets. It turned out to be the “Perfect Match.”
In fact, the Peck’s vote to sell to PSK was unanimous among all the associates; not a single employee voted no.
All about PSK
PSK Supermarkets is also a family-run company. Paul Katz, founder, started with a fruit stand in the Bronx in the 1940s. In 1956, he had saved up enough money to buy his first grocery store on 204th near Montifiore Hospital. His son Sydney, who could often be seen delivering orders on his bicycle as a child, joined his dad in 1962.
The father-and-son team built up the business to 7 grocery stores over the years.
In 1987, Sydney’s sons, Daniel and Noah joined the business, and the family started opening up full-size supermarkets throughout New York City and Upstate New York.
Today they operate 14 supermarkets from Brooklyn, to Harlem, to Dutchess and Columbia County. Stores do business as Foodtown, Freshtown, and Pathmark.
In 2020, after Daniel and Noah saw how hard everyone worked in the stores – keeping the shelves full and servicing customers – they converted to being employee-owned.
They became an “ESOP.” Employees of ESOPs earn allocations of company shares every year. They accumulate the shares and redeem them for the cash value when they retire.
Today, Noah Katz is the President and CEO of PSK. Noah stated “We have always attributed the success of our company to the hard work of our associates, they are amazing people. That is why the ESOP works so well. The Associates have the ownership stake in the upside of all their hard work.”
One ESOP Purchases
Another ESOP
With the Peck’s sale to PSK, one employee-owned company is purchasing another employee-owned company.
This is extremely rare.
The associates with stock at Peck’s will receive the proceeds from the sale from all their hard work over the years. Then, they will have the possibility of doing it all over again at PSK. It’s win-win for everyone. The longer the associates stay on at PSK, the more stock they can earn over their career in the larger company.
The associates at Peck’s are very excited about this transition.
Jeff Gombita, who has worked in the stores since he was a young man, stated, “All the associates are looking forward to this great opportunity for everyone. The Peck’s associates get the rewards from the sale of the company for all our hard work over the years, plus we get to be part of a great new larger company that operates with the same family run values as us.”
Gombita added, “The customers also win because the prices will be more aggressive with the larger company.
“We are very happy that PSK is keeping everyone working in the new company, that was very important to us,” he said.
What the Customer’s Can Expect – Lower Prices
Lee Reimer and Noah Katz have identified a “Theme” for the transition which will take place after Labor Day: “Keep everything going.”
Katz stated, “We will start the process of lowering many prices based on our lower cost structure from the Allegiance Co-op. We will also be running a very aggressive weekly sale, which we do in all our stores.”
PSK is part of a large buying co-op called Allegiance Retail Services. There are over 135 stores in the co-op which lets the stores buy groceries at the same truckload prices as all the major chains.
“This lets us pass on the savings to customers and go head-to-head with every major chain in the region,” stated Katz.
“Peck’s shoppers will save money after the transition due to our lower cost and pricing strategy,” he added.
Katz also said that “Every Pecks Associate will be offered their job in the new company with the same rate of pay and benefits.”
PSK will also be keeping all the local vendors. Lastly, PSK, just like Peck’s, is a very charitable company. PSK will continue all the charitable relationships and giving in the communities of the Peck’s stores. They do this now in their other stores.
More coming
Once the stores are transitioned and the associates have learned some of the new systems, Katz stated that a remodel plan will be developed starting next year.
PSK stores have fully remodeled Deli’s, Bakeries, Fruit and Vegetable Departments, Butcher Shops, and more.
The Peck’s stores will start to receive these upgrades as we work with the teams moving forward.
PSK supermarkets also has a very unique program in addition to competitive prices and their weekly sale program. They have the Fresh Points program.
Shoppers earn 10 points per dollar on every order with their club card. The points add up fast and the point totals are always on the register receipt. Then, shoppers redeem their points for free and discounted groceries. For example, PSK has shoppers that have never paid for milk or eggs because that is how some shoppers decide to use their points. Points can also be used for free gas for your car, gift cards and groceries.
Katz added, “We are thrilled to team up with the Peck’s associates and serve these wonderful communities. We thank everyone for giving us the chance to serve you and we look forward to being part of the community for decades to come.”
