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Facing competition from Walmart and Wegmans’ impending arrival to its core Pittsburgh region, Giant Eagle announced plans to spend more than $100 million on a “Because It Matters” strategy designed to lower prices, improve service and food quality, and revitalize stores.
Giant Eagle in a statement said that the investment, which runs through 2026, marks a refocus around core operations following the completion of two “historic organizational milestones” over the last twelve months: the sale of the GetGo c-store business to Couche-Tard for $1.6 billion, and rapid pharmacy growth following the closing of several Rite Aid locations.
“I want to be the best version of Giant Eagle that we can be,” president and CEO Bill Artman told the Pittsburgh Tribune-Review. “And I know we haven’t done that over the last couple of years.”
The initiative comes as Giant Eagle landed in last place among grocers in The American Customer Satisfaction Index released this past January.
A major focus is on reducing prices following inflationary pressures. “Millions of dollars” will be invested in reducing prices on dozens of the most frequently purchased items across supermarkets “to create recurring value” for customers. Themed promotions, such as a just-introduced “$1 Deals” program offering 1,000 items priced at $1, will be more noticeable in addition to weekly sales, discounts via the grocer’s mobile app, and savings through the myPerks loyalty program. Several internal cost-cutting measures will be taken to keep prices low.
Justin Weinstein, EVP and chief merchandising and marketing officer, told Progressive Grocer, “We’re not going to be an EDLP retailer. We also don’t want to be a pure-play high-low retailer. We want to find this middle ground where promotion serves a big role.”
Giant Eagle further said quality and service have differentiated Giant Eagle for decades and the “two areas must continue to resonate strongly with customers.”
Giant Eagle Refocuses on the Grocery Fundamentals To Stave Off Competition
Towards that end, Giant Eagle recommitted to hiring and training certified butchers, bakers and other food professionals; offering a wide variety of fresh produce, meat, seafood, bakery and prepared meals; and making deliveries seven days a week to ensure freshness. Processes are being reviewed to ensure produce meets and exceeds customer expectations, with a priority on key categories: berries, grapes, tomatoes, and salads.
Investments in store remodels, expanded pharmacy departments and delivery options at certain stores, shopping cart upgrades, and mobile app enhancements are also planned.
An advertising campaign is being launched showcasing its longstanding commitment to the community.
Quality and service will become critical in 2027 when Wegmans opens its first store in the Pittsburgh region, but prioritizing value may recapture share lost to Walmart. Chain Store Guide recently estimated that Giant Eagle and Walmart each control about a quarter share of Pittsburgh’s grocery market.
Artman told the Pittsburgh Tribune-Review that Giant Eagle won’t be able to compete solely on price. He said, “Are you going to pay a little bit more? Yes, you are. But if we can provide a better experience, better variety and better quality, I believe customers will make the trip.”