Jack Clemens’ father and uncle started a tiny market—perhaps 1,000 square feet—just outside of Philadelphia in 1939. When the Clemens family opened their area’s first supermarket in 1954, it was novel and huge at nearly 15,000 square feet. Today most markets dwarf that size, particularly enormous hypermarkets and wholesale clubs. In many ways, the U.S. economy has mirrored this change. As Burns points out, the marching roll-ups and expansions of megaretailers forces smaller companies to expand or close.

Clemens, 58, began working part time in the family business in 1963. He worked his way up to president by 1986, and, two years later, ascended to CEO and chairman. Two of his sisters, a brother and more than a dozen other family members worked in the business over the years. Under Clemens’ tenure, the chain reached $300 million in revenue with 2,800 employees. But during the past 15 years, the environment in which supermarkets do business has changed dramatically. "Other specialty shops were starting to open up that carried a lot of the products we carried, such as pet foods. And Wal-Mart started to come in, and it started taking laundry detergents and the paper goods. And then Costco and BJ’s opened and drugstores got into the food business. And then the convenience stores started carrying food also," he laments.

Clemens also faced increasing costs to build, expand and upgrade stores in order to compete, along with rising expenses for employee health insurance and banking and credit card fees—all this in a sector in which 1 percent is considered a good margin.

On top of new competitors and higher costs, Clemens was squeezed by the onslaught of bigger supermarket companies. SuperValu (which owns 2,500 stores) acquired Clemens’ primary supplier, as well as one of its principal retail competitors.

In 2005, even as Clemens was hiring a supermarket consultant to explore strategic options, he realized he would have to grow beyond the family’s two dozen stores or sell. Expanding meant either going public or taking a large private equity infusion—alternatives that would dilute the family’s stake. Clemens once even discussed merging with a local competitor, the family that owned Genuardi’s markets. But Safeway, which operates more than 1,700 stores, purchased Genuardi’s in 2001.

Clemens also had little idea who would take over for him as he neared retirement. He blames himself for not developing a formal program to groom family members. While his father had urged him to go into the business, Clemens did not place the same pressure on his children, leaving no one to replace him.

Faced with these circumstances, Clemens and his board decided to sell. Planning for the sale took roughly 18 months; the transaction proved relatively tame compared to Burlington’s imbroglio. Giant Food Stores, a division of the $60 billion Dutch grocery giant Royal Ahold, purchased 14 Clemens stores. C&S Wholesale Grocers, a $20 billion food warehousing and distribution company, acquired eight stores, then quickly resold six of them. Clemens would not discuss the terms of the sale, which closed last September. According to reports, the 14 stores that Giant Foods bought grossed about $190 million in 2005. Clemens counted family members and workers among some 150 shareholders.

Today Clemens looks forward to spending more time with his family, vacationing and racing his 1970 GTO. The decision to sell, however, was not predicated on his retirement. He still envisions a few more years of work ahead as he continues to consult with Giant Food Stores; he also hopes to work with other family businesses. One of his sisters plans to continue operating grocery stores, and some family members have stayed on with the new owner.