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October 2, 2025
How Can Giant Eagle Defend Pittsburgh?
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.”
Discussion Questions
Where should Giant Eagle be focusing its investments to best fend off existing and incoming competitors in Pennsylvania and Northeast Ohio?
How competitive does Giant Eagle have to be in terms of prices versus Walmart?
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Scott Benedict
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Giant Eagle has the advantage of familiarity in the Pittsburgh metro, where it has established itself as a hometown grocer. However, organic growth in the market is subdued and consumers are shopping around more, so the expansion of rivals – which now also seems to include Meijer (which is not mentioned in this article) – raises the potential for share erosion. This makes it critical for Giant Eagle to double down on what matters, most of which is price. Improving stores is also important as the estate is variable. Even so, the challenge is that Giant Eagle will be caught in the middle: it won’t be as cheap as Walmart, it won’t be as quality focused as Wegmans. This is an uncomfortable place to be.
I’ve not much to add to this save some historical tidbits: the book Main Street to Miracle Mile, in its section on food retailing, described Pittsburgh in the 1930’s as one of the major battlegrounds between tradtional grocers and the newly named “supermarkets”…Le plus ça change…!
Love the name of the $100 million investment, “Because it Matters!” However, what is it that matters? Giant Eagle’s problem is that it can’t win two wars simultaneously with limited ammunition. Giant Eagle needs to stop trying to be everything to everyone. Pick your lane – either become Pittsburgh’s authentic hometown grocer with unmatched local connection (and accept you’ll cost more than Walmart), or commit to a true value proposition that challenges Walmart directly. Meanwhile, Wegmans’ 115,000 sqft store, arriving in 2027, will bring its cult-like following, an extensive selection, and an in-store experience. The strategic quicksand that comprises the middle positioning makes it easier for both competitors to chip away at Giant Eagle’s market share.
Moves such as the certified butchers and bakers are great if they become brand ambassadors who know customers by name and make recommendations. Otherwise, they’re just a cost center trying to justify higher prices. The real problem? Giant Eagle HAS made a decision – to straddle the middle. Some of these investments could actually work brilliantly as part of a focused differentiation strategy. But without choosing a lane, they’re just expensive features looking for a strategy, rather than strategic capabilities building a competitive moat.
Giant Eagle’s “Because It Matters” plan is a smart defensive posture, but to fend off Walmart, Wegmans, and other encroachers in Pennsylvania and Northeast Ohio it must invest with surgical clarity. First, it should double down on fresh, in-store differentiation—certified butchers, superior produce quality, expanded prepared foods, and a strong seafood/bakery core—to justify the premium over big-box operators.
The chain should also pour capital into store remodels, mobile/digital tools, delivery/fulfillment enhancements, and loyalty/CRM to reclaim its emotional bond with local shoppers. In markets where Wegmans is entering, hyperlocal assortments (reflecting neighborhood tastes) and “destination” categories (ethnic foods, wellness, store experiences) will become vital. According to Giant Eagle’s own statements, it plans to reduce prices on high-frequency items via themed promotions (e.g. “$1 Deals”) and strengthen its mobile app and loyalty program to deliver recurring value.
On pricing, Giant Eagle doesn’t need to beat Walmart at its own game—competing solely on price is a losing battle in scale. Instead, it must aim for a “good enough” threshold: be competitive enough on staples so price doesn’t drive defections, but lean into superior experience, quality, and local trust as the differentiator. Giant Eagle’s CEO acknowledges that the chain cannot be an “everyday low price” (EDLP) player, nor a pure promotional grocer, but wants to strike a middle ground.
In short: the best defense for Giant Eagle is to reinforce what others struggle with—fresh, local, service-led experiences—while ensuring that its price positioning is close enough to Walmart’s on core items to keep price-sensitive shoppers from defecting. If it marries operational excellence with emotional loyalty, it can maintain territory even in the face of big competitors.
Giant Eagle has the advantage of a head start….They already have the customers to loose. If they can execute the plan quickly and effectively, which is a big order as it sounds like a 4 year plan condensed to 18 months, they should be able to keep a strong loyal base. No one will win against Walmart on Price. It is a fools game…they can keep prices abnormally low for several years to win customers on Price and then start raising the prices and it would not even make footnote on quarterly report. Giant Eagle is focusing on the right areas; quality, selection, service, and an easily shapable format with clean brightly lit store.
Hopefully, “Because it Matters” is not just a response to the coming competition. As outlined, this plan should be implemented even without the challenge of competition. Why? “Because it Matters”.
As for responding to the coming competition… Wegman’s, Walmart, and Meijer’s are all differnet animals from Giant Eagle’s traditional supermarket. Some shoppers will gravitate to those offerings. The intruders will take a share simply because they offer different products and fill differnet needs and will gravitate towards them just because they are different.
There is no holding off the incursion; Giant Eagle should do their own thing and expect the encroachment.